The Ministry of Corporate Affairs of India introduced Strike Off to help any business owner running a non-profitable business, owning a defunct business, or planning to start a new company get their company’s name struck off from the register. non-functioning companies remove the name of their company from the register on time. 

As the Companies Act (2013), Strike Off gives ROC (Registrar of Companies) the right to remove a company’s name from the register as its initiative. Companies can also voluntarily submit an application to remove their names from the register without court intervention. 

Strike Off for PLCs

Companies that are eligible to apply for Strike Off

  • Companies that do not have any asset or liability
  • Companies that have failed to commence any business activity or operation within one year of commencement
  • Companies that have not been operational in the last two financial years
  • Subscribers to the memorandum have not paid the subscription which they had undertaken to pay at the time of incorporation of a company and a declaration in form INC-20A to this effect has not been filed within one hundred and eighty days of its incorporation

Companies that can’t apply for Strike Off: 

  • Listed Companies
  • Delisted companies as a result of non-compliance
  • Vanishing Companies - Companies that cease to file their statements of return after raising capital, and whereabouts of their registered office or directors are not known 
  • Companies that are subject to investigation or have pending prosecutions in court
  • Companies that have accepted public deposits, and those deposits are  outstanding or defaulted in repayment
  • Companies that have secured a loan or are under immense debt from banks or other financial institutions
  • Companies facing management issues
  • Companies that have tax dues

Application and associated documents

  • An application for removal of the name of the company from the register of the ROC to be filed in form STK-2 along with a fee of INR 10,000
  • If the company is regulated by any other authority, an NOC (No Objection Certificate) from the authority needs to be mandatorily submitted along with the application 
  • Duly notarised Indemnity bond from all *directors in form STK-3
  • A Statement of Account certified by a Chartered Accountant stating the assets and liabilities of the company are not older than 30 days prior to the date of filing the application
  • An affidavit from all *directors of the company in form STK-4
  • Special Resolution duly attested by all directors of the company or Consent Letter from the members of the company as on the date of application
  • A statement in relation with pending litigations, if any

*if the person is a foreign national or  non-resident Indian, the indemnity bond,  and declaration shall be notarised or appostilised or consularised.   

Note:

I. There shall be a wait period of three months, while application application by the Company, in case the company has changed its name or shifted its registered office from one state to another 

II. The company shall file its overdue returns in the form AOC-4, (XBRL, if applicable) and MGT-7 before making an application for strike off.

Reference:

  • Section 248 of the Companies Act, 2013
  • Section 249 of the Companies Act, 2013
  • The Companies (Removal of Name of Companies from the Registrars of Companies) Rules, 2016 

Strike Off for LLPs

If an LLP is not conducting any business since its incorporation or for a period of one year or more, it can file an application in Form 24 and urge ROC to strike off its name from the register. 

Application and associated documents:

  • Application in LLP Form 24. The registration fee is INR 500
  • Authority letter signed by each designated partner 
  • Consent Letter by all partners
  • A Statement of Account certified by a Chartered Accountant stating the assets and liabilities of the company are not older than 30 days prior to the date of filing the application
  • An affidavit signed by the designated partners, either jointly or severally
  • Indemnity Bond by all partners
  • A copy of the acknowledgement of the latest Income-tax return filed.
  • Initial LLP agreement along with the payment challan
  • Declaration stating that there are no outstanding, pending litigation against the Designated Partners, Partners and the LLP
  • Letter stating that the bank account has been closed 

Reference:

  • LLP Rules, 2009
  • LLP (Amendment) Rules, 2017, came into force wef 20/05/2017

Download Startup Guide
A guide with complete lifecycle of startup
Download
close-link

Treelife Ventures Services Private Limited.
All Rights Reserved. © 2020.