Striking Off
What is Striking Off?
Striking off is the process of removing a company's name from the Register of Companies, effectively dissolving it. This process can be voluntary or involuntary and is used for companies that are no longer operational or require dissolution
Types of Striking Off:
- Voluntary Striking Off: Initiated by the company itself when it is no longer active or required.
- Compulsory Striking Off: Initiated by the Registrar of Companies (ROC) due to non-compliance, such as failure to file annual returns.
Process of Striking Off:
- Application Submission: File an application for striking off with the ROC using Form STK-2.
- Public Notice:ROC publishes a public notice regarding the proposed striking off.
- Verification:ROC verifies compliance, including clearance of liabilities and pending dues..
- Order of Striking Off:The ROC issues an order to strike off the company’s name from the register.
Advantages of Striking Off:
- Cost Savings: :Reduces costs associated with maintaining an inactive company.
- Simplified Compliance: Eliminates the need for ongoing compliance and reporting for non-operational companies.
- Legal Closure: Provides a formal and legal closure for companies that are no longer in business.
Documents Required:
- Application for Striking Off (Form STK-2): :Completed and signed application form.
- Board Resolution: Resolution passed by the board of directors approving the striking off.
- Financial Statements:Recent financial statements of the company.
- No Objection Certificates:No objection certificates from creditors and other stakeholders.
- Proof of Compliance: Proof of clearing all pending liabilities and dues.