What Is the Company Strike Off?
A company strike off is a procedure in India wherein the name of a company is removed from the Register of Companies maintained by the Ministry of Corporate Affairs (MCA). The company struck off is then considered to be dissolved, subject to the provisions of the Companies Act, 2013. Companies can normally go for a strike-off if they have ceased operations and do not intend to continue operations further.
Who Can Apply for Company Strike Off?
A company can voluntarily apply for the removal of its name to the registrar of companies if it meets the specified requirements of the Companies Act. A company must ensure that its statutory compliances are current before applying, and the closure process will only occur if there are no liabilities preventing closure. A company must settle all its pending dues, liabilities, and other obligations before applying for strike-off.
Top Company Strike Off Procedure in India
The company strike off procedure generally involves the following steps:
1. Board Meeting and Approval
The directors discuss and approve the proposal to close the company and proceed with strike off.
2. Settle Outstanding Liabilities
Before applying, the company should clear applicable debts, taxes, employee dues, and other outstanding obligations.
3. Prepare Required Documents
Documents may include financial statements, affidavits, indemnity bonds, board resolutions, and other information required for the MCA application.
4. File the Strike-Off Application
The prescribed application is filed with the MCA along with the required documents and government fees.
5. MCA Verification
The Registrar of Companies reviews the application and may issue notices or seek additional information if required.
6. Publication and Removal of Name
After completing the prescribed process, the company's name is removed from the Register of Companies through the applicable MCA order and the company is dissolved.
Why Professional Assistance Matters
Although the strike-off process seems simple, errors in documentation, pending compliances or liabilities, among other reasons, could cause a delay in the procedure. Professional guidance can help in understanding the compliance gaps and preparing the application accordingly. MARCS BizAdvisors helps businesses with the closure process and prepares the required MCA compliances in order to make the procedure organised and hassle-free. From understanding the eligibility and documents required to assist in the strike-off application, professional guidance can help streamline the process.
Conclusion
Opting for the top-notch company strike off procedure India is not as simple as applying online; rather, it requires a meticulous examination of applicable legal procedures and proper compliance with them. Following all the necessary steps, including payment of all dues, maintaining all required records, and filing all documents with the Ministry of Corporate Affairs is essential. In case you have an inactive company that you are looking to close, MARCS BizAdvisors can assist you in determining all legal requirements and guiding you through the company strike off procedure.
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