Company Closure

When the Company is incorporated, a Certificate of Incorporation is issued by the Registrar of Companies which acknowledges the existence of the Company.

Company Closure

What is Company Closure ?

If we go by the literal meaning of the strike-off then Strike Off means removing the name of the Company from the Register of Companies maintained by the Registrar of Companies. It is more like a Closure of the Company and the Company will not be in existence after being Struck Off and cannot perform any operation thereafter.

It usually takes at least 3 months for a company to be officially dissolved, but the length of time can vary considerably if the process is complex. However, a company will cease to exist in not less than 3 months from the winding-up notice being advertised in the Gazette. However, some companies may apply under fast track exit mode for Striking Off its name.

Conditons When Company Can’t Go for Striking off

  • 1.) The company is incorporated after 2nd November 2018, but it has not filed 20A.
  • 3.) For ongoing company i.e having business transactions in last 1-2 years
  • 5.) Any director is disqualified.
  • 7.) Any ongoing litigation are pending.
  • 2.) One year is not completed since incorporation.
  • 4.) DIN is deactivated.
  • 6.) The company has already received notice from ROC of strike off.

FAQs

Strike Off means removing the name of the Company from the Register of Companies maintained by the Registrar of Companies. It is more like a Closure of the Company and the Company will not be in existence after being Struck Off and cannot perform any operation thereafter.

Shutting down a company is a long and complicated procedure. A Private Limited Company can be closed down in various manners depending on the requirements of the owner.The owner can sell the company. Can close down the company by declaring the company ‘Non -operational” (Striking of the company).Winding up or dissolving the company.

Yes Strike can be done even without an annual filing subject to active DIN and NO business since Incorporation.Note: 20A filing compulsory if co. is incorporated after 2nd Nov 2018

When a company is struck off, the name would be removed from the company register and it can not trade, sell its assets or make payments or even it can not get involved in any other business activities.

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