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What is Strike Off Company ?

When the Company is incorporated, a Certificate of Incorporation is issued by the Registrar of Companies which acknowledges the existence of the Company. Once the name of the company is entered into the register it cannot be removed unless the company applies for it or is processed by law. Strike Off means removing the name of the Company from the Register of Companies maintained by the Registrar of Companies. It is more like a Closure of the Company and the Company will not be in existence after being Struck Off and cannot perform any operation thereafter. The voluntary closure of a company can be either through winding up or application by the company for striking off of its name to Registrar of Companies (ROC).

Eligibility Criteria for Companies to opt for Strike Off

The following companies are eligible for opting for strike off:

  • A company that has failed to commence its business within one year of its incorporation; or
  • A company that is not carrying on any business or operation for a period of 2 immediately preceding financial years and has not made any application within such period for obtaining the status of a dormant company under section 455.
Companies that are not eligible for Strike off

As per the Companies Law, a company will not be eligible for strike off under the following circumstances:

  • The company is incorporated after 2nd November 2018, but it has not filed 20A.
  • One year is not completed since incorporation.
  • For ongoing company i.e having business transactions in last 1-2 years.
  • DIN is deactivated.
  • Any director is disqualified.
  • Any ongoing litigation is pending.
  • Company has already received notice from ROC of strike off.
Documents required for closure of the Company
  • Consent of the Creditors of the company
  • Indemnity Bond duly notarized by all directors (in Form STK 3)
  • A certified statement of liabilities by a Chartered Accountant comprising of all assets and liabilities of the companies
  • An affidavit by all directors of the company in Form STK 4
  • Certified true copy of Special Resolution (duly signed by every director of the company).
  • Digital Signature of the Directors
  • PAN and Aadhaar card of directors
  • Consent Letter and Affidavit of its Director
  • A statement concerning any pending litigation with respect to the company
  • Copy of Board resolution authorizing the filing of this application.
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