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COMPANY STRIKE OFF

Striking off of company simply means closing of a defunct company, in fast way. It is simplest way to close a company.
Any company can get strike off whether it’s a Private company, One-person company, Public company and Section 8 company.
eForm STK-2 is required to be filed pursuant to Section 248(2) of the Companies Act, 2013 and rule 4, 5, 6 & 8 of the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016
 


WHICH KIND OF COMPANY CAN BE CLOSED WITH STK-2 FORM?


Inactive Since Past Two Years


Under section 248(1)(c), a company can be closed even when the company started its business but has been inoperative for the past two financial years.

No Litigation Pending


There should not be any litigation or tax assessment pending for the company with the state government or central government or their agencies.

There is Nil Assets or Liabilities


There is no assets or liabilities in the company. All bank A/c must be closed, and the financial statements must be certified by a Chartered Accountant.

Document of Company


All ITR and Returns Filed with ROC
Board Resolution Authorising the Closure
Affidavit from all the Directors

Indemnity Bond from all the Directors

Companies not Commenced Operationsy


Under section 248(1)(a), only that company can be closed which could not commence its business operations within one year of its incorporation. In other words, there is absolutely no transaction in the company

Financial Documents


Bank A/c Closure Proof
Financial Statement with NIL Liabilities




List of Documents Required



S No. Documents Required
1. A statement of accounts showing the assets and liabilities of the Company made up to a day, not more than thirty days before the date of application and certified by a Chartered Accountant
2. Copy of Board resolution authorizing the filing of this application;
3. Copy of special resolution passed or copies of consent obtained under sub-section (2) of section 248, as applicable
4. Indemnity bonds [to be given individually or collectively by the director(s)] in Form No. STK-3
5. Affidavit in Form No. STK-4
6. Copy of order of the concerned regulatory authority, if any, approving the filing of this application
7. Copy of relevant order for delisting, if any, from the concerned Stock Exchange
8. Optional attachment(s), if any.


Procedure of Strike off


To close an organization with Form STK-2 a gathering of the investors of the organization must be brought so as to choose about the conclusion with in any event 75% voting rights.
If the company had registered under GST or obtained licenses under any government department, the same need to be surrendered before an application for closure is filed by the company.
The bank accounts of the company must be closed, and a certificate from the banker is needed. Prepare a financial statement with Nil Assets and Liabilities, A Practicing CA or Auditor shall certify it.
All directors and shareholders have to swear an affidavit that all information and documents being filed is true and correct and an indemnity bond that if any liability comes up the directors shall pay in person.
Check that the company has filed all pending ITR & ROC Return to the ROC, the application for closure of the company filed online with a digital signature in Form STK-2 with the government fee of Rs. 10,000/-


Non-Qualifying Companies

Non-Qualifying Companies
The following companies do not qualify for the provision of strike off:

1. Listed companies.
2. Companies delisted on account of non-compliance of listing regulations, listing agreement or any other statutory laws.
3. Vanishing companies.
4. Companies which has been listed for inspection or investigation –
if such directive is being carried out/pending/completed but the prosecutions concerning such inspection or investigation are pending in the Court of law. 5. Companies which hasn’t yet responded to notices of select provisions.
6. Companies which hasn’t furnished the follow-up instructions on any report under section 208 of the Act.
7. If the prosecutions related to the above two provisions are pending in a Court of law.
8. Companies against which any case for prosecution
is pending in a Court of law.
9. Companies, whose application for compounding is pending before the competent authority for compounding the offences
committed by it or any of its officers in default.
10. Companies accepting any public deposits which are outstanding.
11. Companies having any charges which remain to be satisfied.
12. Companies registered under Section 25 of the Companies Act, 1956 or Section 8 of the Act.