Striking off Private Company
You own a private company, and it is inoperative due to some reasons or desires to close a loss making company. Closing of a inoperative business is also a business strategy. The resources tied up in a loss making or inoperative company can be utilized in alternate investment/business which possess growth prospects.
A company may be required to close down due to the following reasons
- Not able to achieve the targeted business
- Finding out a better viable business
- Inoperative company etc.
You can make application to registrar of companies to strike off your company from the register of companies. Strike off is the easy route under which a private company can be closed down and save your company from further legal compliances and costs.
Procedure for Strike off of your company
- Conduct Board Meeting of the directors and pass resolutions to decide the closing of the company and to conduct general meeting of shareholders and to authorize a director to file the e-forms with the registrar
- Conduct general meeting of shareholders and pass special resolution to close the company
- File application to registrar of companies in e-form stk-2 with necessary attachments
- ROC issue show cause notice to various regulators to invite their objections on closing of your company
- Registrar of Companies strike off your company, if no objections are received
How long will it take to strike off the company
Strike off process will take a minimum period of 1 month from the date of making application
Company has certain liabilities, can such company apply for strike off
One of the pre-requisite for strike off is that the company should extinguish/settle all its liabilities before making an application for strike off
Company has certain assets, can such company apply for strike off
Companies which has assets in the balance sheet can apply for strike off.
Can a section 8 (erstwhile 25) company apply for strike off
No, a section 8 company cannot apply for strike off
What are the basis documents required to be filed along with the application
- Indemnity bond duly notarized by every director;
- Statement of accounts containing assets and liabilities of the company made up to a day, not more than thirty days before the date of application and certified by a Chartered Accountant;
- An affidavit by every director of the company;
- Copy of the special resolution duly certified by each of the directors of the company or consent of seventy five per cent of the members of the company in terms of paid up share capital as on the date of application;
- Statement regarding pending litigations, if any, involving the company.
- Copy of board resolution authorizing the director to file the form
If you need assistance in closing your company, contact us
