Strike Off of Private Limited Company​

Overview

Running a private limited company comes with numerous compliance obligations. However, if your company is dormant, inactive, or has not commenced business since its incorporation, continuing to comply with these requirements can be burdensome. Striking off your private limited company from the Registrar of Companies (RoC) is a practical solution to avoid unnecessary compliance costs and legal penalties. E Accountax Manager provides expert guidance and comprehensive services to help you smoothly and legally close your company, ensuring that the entire process is efficient and hassle-free.

What Does It Mean to Strike Off a Private Limited Company?

Striking off a company refers to the process of removing a company’s name from the Register of Companies maintained by the RoC. Once the company’s name is struck off, it ceases to exist as a legal entity, and all its operations must be terminated. This process is suitable for companies that have been inactive, have not commenced business, or have no assets and liabilities.

Why Strike Off Your Private Limited Company?

• Cost-Effective: Maintaining a dormant or non-active company involves recurring compliance costs, such as filing returns, audits, and other statutory requirements. Striking off the company eliminates these expenses, making it a cost-effective solution.

• Avoid Legal Penalties: Companies that fail to comply with statutory obligations, such as filing annual returns and financial statements, can incur significant fines and penalties. By striking off the company, you can avoid these legal consequences.

• Quick Closure: The strike-off process can be completed in about 3 to 6 months through a fast-track exit process, allowing you to close the company quickly and move on to new ventures.

• Peace of Mind: Legally closing a non-operational company ensures that you are not liable for any future compliance obligations or penalties, giving you peace of mind.

Eligibility for Strike Off of Private Limited Company :

Your private limited company may be eligible for strike-off if it meets the following criteria:

• No Business Activity: The company has not carried on any business or operations for the past two years or more.

• Nil Assets and Liabilities: The company has no assets and liabilities at the time of applying for strike-off.

• No Pending Compliance: The company has completed all pending compliances, such as filing financial statements and annual returns up to the date of application.

• No Litigation: There should be no ongoing litigation or legal proceedings involving the company.

• Inactive Since Incorporation: Companies that have not commenced business within one year of incorporation are also eligible for strike-off.

Process of Striking Off a Private Limited Company with E Accountax Manager

E Accountax Manager offers a seamless and transparent process for striking off your private limited company. Here’s how it works:

• Document Verification and Preparation: We start by verifying all necessary documents, including the consent of creditors, indemnity bond, affidavits from directors, and a certified statement of assets and liabilities prepared by a Chartered Accountant.

• Filing of Pending Forms: If there are any pending forms such as AOC-4 (financial statements) and MGT-7 (annual returns), we will assist in filing them before proceeding with the strike-off application.

• Submission of Strike-Off Application: We will prepare and file the application for strike-off in Form STK-2 with the RoC, along with all required documents such as affidavits, indemnity bond, and consent letters.

• RoC Verification and Public Notice: Upon receiving the application, the RoC will verify all details and issue a public notice inviting objections from the public or stakeholders, if any, regarding the proposed strike-off.

• Final Strike-Off: Once the RoC is satisfied that all conditions have been met and there are no objections, the company’s name will be struck off from the register, and a notice of dissolution will be published in the Official Gazette.

Documents Required for Strike Off of Private Limited Company

To facilitate the strike-off process, the following documents are required

• Consent of Creditors: A consent letter from all creditors stating no objection to the strike-off.

• Indemnity Bond (Form STK-3): Duly notarized by all directors, indemnifying any liabilities that may arise after the strike-off.

• Affidavit (Form STK-4): A sworn affidavit by all directors confirming the company’s status and declaring that all information provided is true.

• Statement of Assets and Liabilities: Certified by a Chartered Accountant, showing that the company has no liabilities.

• Special Resolution: A certified true copy of the special resolution passed by the shareholders to apply for strike-off.

• Digital Signatures: Valid digital signatures of the directors for filing the application online.

• PAN and Aadhaar of Directors: Identity proofs of all directors.

Why Choose E Accountax Manager for Striking Off Your Private Limited Company?

• Expert Guidance: Our team of experienced professionals, including CAs and CSs, will guide you through each step of the strike-off process, ensuring compliance with all legal requirements.

• Transparent Pricing: We offer competitive and transparent pricing with no hidden charges, making the process affordable for all businesses.

• Quick and Efficient Process: We handle all aspects of the strike-off process, from document preparation to final submission, ensuring a quick and hassle-free experience.

• Dedicated Support: You will have a dedicated compliance manager to keep you updated on the progress of your application and address any queries you may have.