Every business is founded with the intention of operating indefinitely, yet not every firm succeeds in the long run. As we all know, there is a certain protocol for forming a business, running a business, and closing a business. There are now two methods for closing a business. 

• Strike Off or Cancellation Of Company’s Registration voluntarily

• Winding Up

Strike Off or Cancellation Of Company Registration

Striking off a company or cancellation of company registration simply implies quickly ending a defunct company. It is the most straightforward method of closing a business.

Companies That Can Get Strike Off

• Private Company
• Public Company
• One Person Company
• Section 8 Company

Ways To Strike Off A Company Name

• By The Company Itself as Voluntary Striking Off
• By The Registrar Of Companies

When A Company Cannot Go For Voluntary Striking Off

An application on behalf of a company may not be filed if the company has:

(a) changed its name or relocated its registered office from one state to another 

(b) made a disposal for price of the property or rights held by it, immediately before ceasing to trade or carrying on of company, for the purpose of disposal for profit in the ordinary course of trading or otherwise carrying on of business 

(c) engaged in any other activity.

(d) has requested that a compromise or agreement be sanctioned by the Tribunal, and the subject has not yet been resolved;

Procedure To Strike Off or Cancellation Of Company Registration In case Of Voluntary Striking Off

The process is straightforward and follows these steps: - 

i) Authorise any firm officer or director to call a Board Meeting. 

ii) At least seven (7) days before the board meeting, send a notice of the meeting with a full agenda. 

iii) Call a Board Meeting and get a Board Resolution passed. 

iv) Notification of Annual General Meetings/Extraordinary General Meetings, if applicable

v) Call a General Meeting for the purpose of passing a Special Resolution. 

vi) Submission of MGT-14 with all relevant attachments.

vii) Submission of the STK-2 and other relevant documentation. 

viii) After determining that all attachments are in order and all requirements are met, and it is reasonable and equitable to strike off the company, the Registrar of Companies will strike it off after publishing a public notice 

Documents Required To Attach 

The following documents are included with the E-forms:

a notarized indemnity bond signed by all directors (in Form STK 3).

• A statement of liabilities lists all of the company's assets and obligations (certified by a Chartered Accountant). Special Resolution certified genuine copy (duly signed by every director of the company). 
• A copy of the Board resolution allowing the application's filing. Form No. STK-3 indemnity bonds 
• An affidavit in STK-4 format A declaration of any outstanding legal proceedings involving the firm. 
• If applicable, a copy of the appropriate delisting order from the competent stock market. 
• If the company is regulated by a regulatory agency, a certificate of no objection from that department is required.

Conditions Need To Be Fulfilled Before Striking Off A Company Or Cancellation Of A Company Registration

As previously stated, the prerequisites in both circumstances are as follows. A firm can apply for voluntary striking off, if it meets the following criteria: -

 i) Eliminating all of the company's obligations; and 

ii) obtaining special resolution approval from the members. 

On discovery of any of the following grounds by the Registrar of Companies Can Cancel A Company Registration:-
i) a company has failed to begin operations within one year of its incorporation 

ii) a company has not carried on any business or operation for the two most recent financial years and has not applied for dormant company status during that time

iii) The subscribers to the memorandum have not paid the subscription that they agreed to pay at the time of the company's incorporation, and a declaration to that effect has not been filed within 100 and eighty days of the company's incorporation 

iv) the company is not carrying on any business or operations, as revealed by physical verification after the Registrar of Companies locates the company's registered office.

Time To Strike Off or Cancel A Company Name From The Registrar Of Companies

After filing an application for striking off or cancellation of a company registration using E-form STK-2, the relevant Registrar of Companies (ROC) will strike off the firm's name after validating the paperwork, which usually takes 3-4 months. However, if the Registrar of Companies (ROC) raises an objection, the procedure may take longer or possibly reject the application.

Conclusion

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Our team has years of experience and are the best in their respective fields. They assist you throughout the entire process.