Running a company involves dedication, compliance, and consistent effort. However, there may come a time when business owners decide to discontinue operations. Instead of letting the business remain inactive and pile up compliance requirements, the most effective solution is to close it legally. This is where Strike off Company Services play a crucial role. It is a structured and lawful way of removing a company’s name from the records of the Registrar of Companies (RoC).
What is Strike Off in Company Law?
A company strike-off means removing the company’s name from the official register maintained by the RoC. Once struck off, the company ceases to exist as a legal entity. This option is best suited for businesses that are no longer in operation and do not want to comply with unnecessary legal formalities.
The Ministry of Corporate Affairs (MCA) provides an easy route for companies that have not commenced business or have been inactive for a certain period to apply for strike-off.
When Should You Opt for Strike off Company Services?
Business owners may consider strike-off in the following cases:
No Business Operations: If the company has not commenced business within a year of incorporation.
Inactive for Two Consecutive Years: Companies that have not carried out any financial transaction or activity.
Voluntary Closure: Promoters who no longer wish to continue the business.
Cost-Saving Decision: Avoiding compliance costs like annual filing, audits, and tax filings for a non-operational entity.
Eligibility for Strike Off
Not every company can be struck off. To use Strike off Company Services, the company must meet certain conditions:
It should not have ongoing litigation.
It must not have any outstanding government dues.
It should not have secured loans or charges pending for satisfaction.
All assets and liabilities must be settled prior to application.
Step-by-Step Process for Strike off Company Services
1. Board Resolution
The directors must conduct a board meeting to pass a resolution for striking off the company.
2. Shareholders’ Approval
Consent of at least 75% of shareholders, based on paid-up capital, is required.
3. Filing Application with MCA
The application for strike-off is made using Form STK-2, along with necessary documents.
4. Documentation Submission
Documents such as a statement of accounts, affidavit, indemnity bond, and consent letters are filed.
5. RoC Verification
The Registrar reviews the application, and if satisfied, issues a public notice regarding the strike-off.
6. Final Notification
Once the strike-off is approved, the company’s name is removed from the RoC records, and it legally ceases to exist.
Documents Required for Strike Off
Board resolution copy
Statement of accounts certified by a Chartered Accountant
Indemnity bond by directors
Affidavit by directors confirming no pending liabilities
Consent of shareholders
Why Choose Ebizfiling for Strike off Company Services?
Closing a company may appear simple, but the documentation and legalities involved can be overwhelming. Ebizfiling offers comprehensive Strike off Company Services to ensure a smooth closure process. With expert compliance professionals, transparent pricing, and quick turnaround time, Ebizfiling helps you close your company without stress or delays.
By partnering with Ebizfiling, businesses can save time, avoid compliance penalties, and ensure a legally valid exit from the corporate framework.
Conclusion
Deciding to close a company is a major step, but it is equally important to do it lawfully. Strike off Company Services offer business owners a hassle-free way to shut down their inactive or unwanted companies. With the right guidance from professionals like Ebizfiling, you can complete the process seamlessly while ensuring full compliance with Indian company law.
