Strike of a Company

It’s important to officially close a business after it stops working or has served its function. In India, the best way to do this is to strike off a corporation with the ROC. It can be easier, cheaper, and more legally sound to understand the process of closing a business, whether the company does it on its own or the government does it. This is especially true if you get help from specialists.

Knowing what ROC Strike Off means for a business

The word ROC The Registrar of Companies (RoC) takes a company’s name off official records when it is struck off. This could happen on its own or because ROC told it to. The legal end of a company’s existence happens when it is struck off. The strike-off fee and the strike-off business process are both important steps along the way.

What is a company that strikes off?

• When a company is taken off the corporate registry, it is no longer legally a business. This is called a strike off. A firm can be struck off for the following reasons:

• It never did business within a year of becoming a company.

• It didn’t perform any business for two years and didn’t ask to be considered dormant.

• Subscribers didn’t pay their subscription fees or complete the mandatory statement.

• These are common reasons for the ROC to strike off a firm.

Who Can Start the Process of Strike Off of a Company?

Voluntary Closure: Strike Off a Private Limited Company

A director can choose to voluntarily strike off a company. This is usually done with a private limited company that is no longer needed or is inactive. It’s a cheaper option than going out of business.

Strike Off Started by ROC

If the qualifying requirements are met, the registrar can also start the strike off process on its own. This is part of the ROC’s process for taking a company off the list of active companies. It is used to clean up the registry of inactive, shell, or defunct companies.

How to Step-by-Step Strike Off a Company

1. Grounds and Getting Ready

Companies can be struck off for either voluntary or ROC-initiated reasons, such as not doing anything, not having any business, or not following the law. The strike-off process can commence once these are found.

2. What the Company Must Do to Voluntarily Strike Off

• To strike off a corporation, there must be a board meeting and an EGM resolution that 75% of the paid-up capital agrees to.

• File the company strike off fee, which is usually called the company strike off fee or the fee for striking off a company. It can be anywhere from ₹5,000 to ₹10,000, depending on the rules for filing.

• Fill out and send in Form STK-2 with the following documents: an indemnity bond (STK-3), an affidavit (STK-4), a statement of assets and liabilities (STK-8 within 30 days), and a resolution.

• Put a public notice in STK-6 on the MCA website, in the official gazette, and in English and vernacular newspapers.

This finishes the official process for a corporation to voluntarily close down.

3. The ROC started the process of strike off

• The ROC sends a notification (STK-1) to the corporation and its directors.

• The business has 30 days to reply.

• If ROC doesn’t get a satisfactory answer, they will go ahead and strike off the firm.

• The ROC posts notices on the MCA website, in the gazette, and in newspapers as part of the process of striking off a firm.

Why getting help from an expert makes the strike off process easier

Legal paperwork, resolutions, fee payments, and publications are all part of the process of completing the strike off of a firm. You can get advice from an expert, like a Chartered Accountant or a Company Secretary, with:

• Making sure the strike-off process is done right

• Figuring out and paying the right firm strike-off price

• Making and sending in documentation and disclosures that are right for the CRO

• Efficiently managing the procedure of striking off a firm to avoid delays or rejection

• This makes it considerably easier and safer for ROC to strike off a corporation.

Typical Company Strike Off Fee and Other Costs

The charge for striking off a company, also known as the company strike off fee, is usually between ₹5,000 and ₹10,000, depending on the most recent rules.

• Manupatra Academy Csdivesh Goyal Next Companies

• Depending on how complicated the job is, experts may charge professional fees.

• Extra charges for putting notices in newspapers

• These add up to the entire cost of the strike off process.

• Legal Effects of Striking Off a Company That Are Important

Important Legal Effects of Striking Off a Company

Legal Closure

After a business is struck off, it no longer exists legally, and its certificate of formation is no longer valid.

Unpaid debts

Liabilities, obligations, and assets do not go away. Even after Manupatra Academy and Csdivesh Goyal were struck off, directors and stockholders may still be responsible.

Restoration and Appeals

If the company is struck off, either voluntarily or by ROC, it can be restored by NCLT within three years if the right steps weren’t followed or the reasons were invalid.

Conclusion

Choosing to ROC strike off a company, either on your own or through a ROC effort, is a simple and cheap way to legally dissolve a business that isn’t operational. Filing the right documents, paying a strike off charge, dealing with debts, and issuing notices are all part of the strike off firm procedure. Expert aid makes the process clearer and makes sure that everyone follows the rules.

If you’re thinking about strike off private limited business or just want to know more about the strike off price, the process, or how to strike off a company, it’s a good idea to talk to a specialist. With expert help, a simplified closure gives you peace of mind and a valid legal closure.

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