Company Strike Off Services in India – 3E Accounting is Ready to Help
Company Strike Off Services in India is required when a company has a Certificate of Incorporation that has been issued by the Registrar of Companies which acknowledges the existence of the Company. Once the name of the firm is provided into registrar, it cannot be deleted unless the business applies for it or is processed by law. When the company fails to start its business or does not able to submit yearly returns, the registrar may suo motto strike off the company by sending a notice to the company at its registered office address.
Various situations will wind the company up. Strike Off is the process by which the Company’s properties are transferred and debts are charged. The Strike off procedure, however, is not that long and stringent yet it may take more than a year to get approved.
The Central Government has therefore informed the 2017 Fast Track Exit (FTE) Scheme of a convenient and straightforward way to close the Companies without going through the strict Strike Off phase.
FTE is a very straightforward and practical method of removing of the Company without going for a lengthy elimination procedure and without High Court intervention. Under these sections, the authority has been provided to Registrar of Companies to remove the name of the Company from the Register of Companies on suo-motto basis. Still, a company can also apply the prescribed form to the ROC for taking away the name of the Company after extinguishing all its liabilities and after complying with some conditions.
The Registrar of Companies may take away the name of a company from the register of companies when;
- A company has failed to commence its business within one year of its incorporation, or
- A company is not conveying on any business or operation for a period of two immediately lead up to financial years, and
- Has not made any application within such period for obtaining the status of a dormant company under section 455 of the Companies Act, 2013.
It usually gets hold at least three months for a company to be officially removed, but if the procedure is complicated, the length of time can vary considerably. In no less than three months from the winding-up notice being advertised in the Gazette, a company will cease to exist, however. However, some businesses can seek to strike off the name under quick track exit mode.
Companies can apply under the fast track exit mode for striking off its name when:
- Companies which are not operating or not carrying on any business for the last two years from the date of application or,
- Companies which are not running or not carrying on any business within one year of incorporation and,
- Companies are having Nil assets and liabilities.
With the 3E Accounting team, the process of removing an incorporated or registered company from the list of companies maintained by the state registrar can be carried out smoothly by merely sharing your company name. Application for strike off can be made by a firm that works actively and by a dormant company as well. 3E Accounting will assist with the services of Company Strike Off in India.
Reasons to Strike Off of a Company
- No Compliance Burden: Once the company is closed, there does not exist the company as such hence the promoters or directors get free from compliance responsibilities and possible dangers of non-compliance.
- Faster route of Closure: An inactive or non-functioning company can be closed swiftly in about 3 to 16 days, whereas traditional methods take longer and are more difficult process.
- Avoid Fines: If the dormant or non-functioning corporation does not comply with the legislation, it can impose severe fines and sanctions and suspensions for the company’s officers in certain situations, including the directors’ debarment from beginning any company. Hence, it is better to formally wind up an inactive company and avoid potential future fines or liabilities.
Which Companies Cannot Go for Strike Off?
- The Listed companies cannot apply for strike off.
- Companies registered under section 8 of the Companies Act, 2013 or under section 25 of the earlier Companies Act, 1956.
- Companies which have already applied for winding up before the High Court or NCLT.
- Companies Which are covered under the Insolvency and Bankruptcy Code, 2016 (IBC)
- In all the above cases Companies are debarred from making an application for strike off. They have to go for lengthy winding-up procedures.
Which Businesses Can Go for Strike Off Subject to Specific Compliances?
- A company which has changed its name or shifted its registered office from one State to another.
- A firm which has decided a disposal for value of property or rights held by it, immediately before cesser of trade or otherwise carrying on of the business, for disposal for gain in the normal course of trading or otherwise carrying on of the business.
- A firm which is involved in any other venture except the one which is needed or advantageous for the purpose of making an application under that section.
- A company which has submitted an application to the Tribunal for the sanctioning of a compromise or positioning and the matter has not been finally concluded.
What Documents Are Required for Company Strike Off?
- Board Resolution.
- Special Resolution or Consent Letters of the Shareholders.
- Statement of Accounts certified by the Chartered Accountant.
- CA Certificate.
- Affidavit by each Director.
- Indemnity Bond of each Director.
- DSC token of the Director for filing of forms.
- PAN and Address proof of the Directors who are giving the affidavit.
The Company Strike Off procedure is an online process. One can also check the company strike off list in India from MCA records. A submitted form for removal of the name of the company / Strike Off Company shall be made in Form STK-2 along with the certain fees.
3E Accounting helps in end-to-end incorporation, compliance, advisory, and management consultancy services to clients in India and abroad. We are here to help you. For Company Strike Off Services in India, contact us today.