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Strike Off Company

All you need to know about Strike Off Company

When a company is incorporated, the Registrar of Companies issues a Certificate of Incorporation, officially recognizing its existence. Once the company’s name is added to the register, it can only be removed through a formal application or legal process. If the company fails to commence business operations or neglects to file annual returns, the Registrar may initiate a suo moto Strike Off by sending a notice to the company’s registered office address.

Strike of Company Meaning:

The term “strike-off” refers to the removal of a company’s name from the Registrar of Companies’ register, effectively leading to the closure of the company. Once struck off, the company ceases to exist and can no longer carry out any operations.

If you wish to revive your struck-off company, you can contact My File Tax for assistance.

The official dissolution of a company typically takes at least 3 months, although the timeline can vary based on the complexity of the process. A company will cease to exist no less than 3 months after the winding-up notice is published in the Gazette. However, some companies may opt for the fast-track exit mode to expedite the strike-off process.

The Companies can apply under fast track exit mode for striking off its name:

  • Companies that are not operating or not carrying on any business for the last two years from the date of application or,
  • Companies which are not operating or not carrying on any business within one year of incorporation and,
  • A company having Nil assets & liability.

Companies that are not eligible for Strike off:

  • According to Companies Law, a company is not eligible for strike-off under the following conditions:

    • The company was incorporated after November 2, 2018, but has not filed Form 20A.
    • Less than one year has passed since the company’s incorporation.
    • The company has conducted business transactions in the last 1-2 years.
    • The Director Identification Number (DIN) has been deactivated.
    • Any of the directors are disqualified.
    • The company has already received a notice from the Registrar of Companies (ROC) regarding strike-off.
    • There are pending litigations involving the company.

    The process of removing an incorporated or registered company from the state registrar’s list can be carried out smoothly with the assistance of My File Tax by simply providing your company name. The strike-off application can be filed by both active and dormant companies.

Cost of Winding up Company

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Simple Prices | No Surprises

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ESSENTIAL

₹ 18999/-

  • Wind up a company with no transactions since incorporation
  • Preparation of Statement of Accounts
  • Preparation of Indemnity Bond
  • Preparation of Affidavits
  • Documents preparation
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ENHANCED

₹ 21399/-

  • Wind up a company with no transactions since incorporation
  • 2 Directors' DIR 3 KYC
  • Form 20A Filing for capital upto INR 1 Lakh
  • Preparation of Statement of Accounts
  • Preparation of Indemnity Bond
  • Preparation of Affidavits
  • Documents preparation
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ULTIMATE

₹ 27399/-

  • Wind up a company with no transactions since incorporation
  • 2 Directors' DIR 3 KYC
  • Form 20A Filing for capital upto INR 1 Lakh
  • 2 DSC Application Class III Individual 2 Year Validity
  • GST Cancellation Application
  • Preparation of Statement of Accounts
  • Preparation of Indemnity Bond
  • Preparation of Affidavits
  • Documents preparation
  • Filing of GSTR-10 (Final Return)
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Closing a private limited company

A few pointers

A company can be closed by submitting an application to the MCA, typically taking 3 to 6 months. There’s also a fast-track exit process available, allowing for a hassle-free and speedy closure, all completed online.

Instead of continuing to meet various compliance requirements such as filing, auditing, and submitting returns, it’s often more economical to wind up a dormant or inactive company. This helps you save on annual compliance costs for a business that is no longer operational.

Failure to meet compliance deadlines results in penalties and fines, and can even lead to the disqualification of directors from forming new companies. To prevent future fines and legal issues, it’s advisable to officially close a dormant company.

How to Wind up or Strike Off Company?

5 Easy Steps

Fill a Simple Checklist

A compliance manager will reach out to you to collect your documents along with a simple checklist. You need to complete the checklist and submit it along with your documents for verification. Our expert team will review the documents you provide and move forward with the process. The dedicated compliance manager will keep you informed about the progress of your company's strike-off throughout the entire procedure.

 

Strike-Off Application

After verifying the documents and details provided by you, we will file any outstanding forms, such as Form AOC 4 and MGT 7, for annual returns and financial statements. We will also prepare necessary documents, including the indemnity bond (Form STK 3) and affidavit (Form STK 4). Once all is in place, we will file the strike-off application in Form STK 2 along with the required supporting documents.

 

 

ROC Procedure

Once the strike-off application is filed, the Registrar of Companies (ROC) will issue a public notice inviting objections to the proposed strike-off. After ensuring all dues have been cleared and liabilities discharged, the ROC will strike off the company's name. The strike-off and dissolution will be officially published in the Gazette.

 
 

FAQs on Strike off Company

The strike-off of a company refers to the official removal of the company's name from the Register of Companies maintained by the Registrar of Companies (ROC). Once struck off, the company ceases to exist legally and is no longer permitted to operate, incur liabilities, or conduct any business.

To close a Private Limited Company, an application must be filed with the Registrar of Companies (ROC) through an online process. This involves submitting various documents, such as financial statements, affidavits, and indemnity bonds. Once the application is approved, the ROC will issue a public notice, and if no objections are raised, the company's name will be struck off from the official records, effectively closing the company.

Yes, a company can be struck off even if compliance was not done during incorporation. However, before applying for a strike-off, the company must clear all outstanding dues, complete necessary filings such as annual returns, and submit relevant documents (like financial statements and affidavits). Once all compliance requirements are met, a formal application for strike-off can be filed.

If compliance has been done for only one or two years, the company must update all pending filings to bring it up to date. This includes submitting annual returns, financial statements, and clearing any other outstanding obligations. Once the company is compliant, the strike-off application can be processed.

No, a struck-off company cannot trade. Once the company’s name is struck off from the Registrar’s records, it ceases to exist legally and is prohibited from carrying out any business activities.

A company can be struck off under the following circumstances: It has not conducted any business for a certain period. It is a dormant or inactive company with no operations. It has failed to comply with filing requirements for multiple years. However, a company’s name cannot be struck off if: There are pending litigation or legal matters involving the company. The company is involved in ongoing business transactions or has outstanding liabilities. The company has failed to submit the necessary compliance documents.

We provide our services across multiple cities in India, including but not limited to: Bengaluru Mumbai Delhi Pune Chennai Hyderabad Ahmedabad Our services are available nationwide to help with company incorporation, strike-off, compliance, and more.

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