CLOSE A COMPANY
Through the Strike Off Process
Easy way to close a Company is to follow the process of Strike Off under section 248(2) of the Companies Act, 2013 and the rule 4, 5, 6 & 8 of the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016.
Strike off under the above provisions could be filed by an Active Company and by a Dormant Company. Section 8 Company can not avail the benefit of strike off process under the above provisions.
As per Section 248 (2) of the Companies Act, 2013, a Company may, after extinguishing all its liabilities, by a Special Resolution or consent of shareholders holding 75% of paid up share capital of the Company, may file an application in the prescribed form to the Registrar of Companies for removing the name of the Company from the Register of Companies on all the following grounds as mentioned under Section 248 (1) of the Companies Act, 2013:
- In case the Company has failed to commence its business within 1 (One) year of its incorporation;
- In case the Company is not carrying on any business or operation for a period of 2 (Two) immediately preceding years and has not made any application within such period for obtaining the status of a Dormant Company under section 455 of the Companies Act, 2013;
- In case the subscribers to the Memorandum of Association have not paid the subscription which they had undertaken to pay at the time of incorporation of a Company and a declaration to this effect has not been filed within 180 (One Hundred and Eighty) days of its incorporation.
Hence, any Company that is not carrying on any business activities or operations under the Company for a period of 2 (Two) immediately preceding years can apply for removal of name of the Company to the Registrar of Companies.
As per Section 249 (1) (c) of the Companies Act, 2013, an application under the Section 248 (2) of the Companies Act, 2013 by a Company shall not be made if, in the previous 3 (Three) months, the Company has engaged in any other activity except the activities that are necessary for concluding the affairs of the Company under that section or for complying with the statutory requirements.
Process Involved
After paying off all the liabilities of the Company, a Board resolution for removal of name of the Company, subject to shareholders of the Company and calling of an Extra-ordinary General Meeting is required to be passed by the Board of Directors of the Company.
Removal of name of the Company needs to be approved by the Directors and Shareholders of the Company
Strike Off Application for removal of name is required to be made in prescribed form
In case the Company is registered with any Regulatory Authority, then the Company needs to obtain a No Objection Certificate from the appropriate Regulatory Authority.
The application needs to be submitted along with an Indemnity Bond duly notarized, a statement of assets and liabilities not older than 30 days duly certified by a Chartered Accountants and an affidavit signed by every director and duly notarized.
Also, a statement in regard to pending litigations, if any, involving the Company needs to form part of the application.
Certified copy of resolution signed by each directors and consent of 75% shareholders needs to be part of the application process
The Registrar, upon being satisfied that the Company is defunct, will strike off the Company and dissolve the same.
Closure of a Company
All inclusive
- Closure of a Company – 15,999/-