Are you holding onto a non-profitable or dormant company?

It’s time to declutter your business portfolio and avoid unnecessary legal hassles.

India’s Ministry of Corporate Affairs (MCA) has rolled out the ‘Strike Off’ provision, a clean-up mechanism for your corporate records.

Under the Companies Act, 2013, Strike Off allows the Registrar of Companies (ROC) to remove inactive companies’ names from the register proactively.

Moreover, companies can voluntarily apply for a strike-off, bypassing court procedures.

🔍 Eligibility Criteria:

➡️ Companies with no assets or liabilities.
➡️ Companies were inactive since incorporation or for the past two financial years.
➡️ Companies where initial subscribers haven’t fulfilled their payment obligations.

❌ Ineligibility Red Flags:

➡️ Listed or delisted due to non-compliance.
➡️ Vanishing companies.
➡️ Companies under investigation or with pending legal issues.
➡️ Companies with outstanding public deposits or secured loans.

📑 Essential Documentation:

Strike Off application (Form STK-2) with a fee.

➡️ Board resolution copy.
➡️ No Objection Certificates.
➡️ Notarised indemnity bonds (Form STK-3).
➡️ Recent Statement of Accounts certified by a Chartered Accountant.
➡️ Affidavit from directors (Form STK-4).
➡️ Special Resolution or Consent Letter from 75% of members.

Ensure all overdue returns are filed before applying.

A three-month waiting period applies if you’ve recently changed your company’s name or relocated across states.

LLPs can also clean houses using Form 24, provided there’s been no business activity for a year or more.

For a detailed breakdown of the process and documentation, DM us to know more!