{"id":4130,"date":"2021-10-30T08:32:07","date_gmt":"2021-10-30T08:32:07","guid":{"rendered":"https:\/\/www.caindelhiindia.com\/blog\/?p=4130"},"modified":"2021-10-30T09:06:15","modified_gmt":"2021-10-30T09:06:15","slug":"all-about-striking-off-of-company","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/all-about-striking-off-of-company\/","title":{"rendered":"All About Striking off of Company"},"content":{"rendered":"<h3><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-4135\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/Striking-off-of-Company.jpeg\" alt=\"Striking off of Company\" width=\"971\" height=\"512\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/Striking-off-of-Company.jpeg 309w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/Striking-off-of-Company-300x158.jpeg 300w\" sizes=\"(max-width: 971px) 100vw, 971px\" \/><\/h3>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a1ade97c0f7a\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a1ade97c0f7a\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/all-about-striking-off-of-company\/#Brief_Introduction_about_Striking_off_of_Company\" title=\"Brief Introduction about Striking off of Company\">Brief Introduction about Striking off of Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/all-about-striking-off-of-company\/#Meaning_of_Striking_Off_of_Company\" title=\"Meaning of Striking Off of Company \">Meaning of Striking Off of Company <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/all-about-striking-off-of-company\/#Governing_Section_of_Striking_Off_of_Company\" title=\"Governing Section of Striking Off of Company\">Governing Section of Striking Off of Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caindelhiindia.com\/blog\/all-about-striking-off-of-company\/#About_Rule_4_of_the_Companies_Removal_of_Names_of_Companies_from_the_Register_of_Companies_Rules_2016\" title=\"About Rule 4 of\u00a0the Companies\u00a0(Removal of Names of Companies from the Register of Companies) Rules, 2016\">About Rule 4 of\u00a0the Companies\u00a0(Removal of Names of Companies from the Register of Companies) Rules, 2016<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.caindelhiindia.com\/blog\/all-about-striking-off-of-company\/#Modes_of_Striking_Off-_of_Company\" title=\"Modes\u00a0of Striking Off- of Company\">Modes\u00a0of Striking Off- of Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.caindelhiindia.com\/blog\/all-about-striking-off-of-company\/#Process_of_Strike-off_Voluntarily\" title=\"Process of Strike-off Voluntarily\">Process of Strike-off Voluntarily<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.caindelhiindia.com\/blog\/all-about-striking-off-of-company\/#Documents_needed_for_Striking_Off_of_Company\" title=\"Documents needed for Striking Off of Company\">Documents needed for Striking Off of Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.caindelhiindia.com\/blog\/all-about-striking-off-of-company\/#After-Effects_of_Dissolution\" title=\"After-Effects of Dissolution\">After-Effects of Dissolution<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.caindelhiindia.com\/blog\/all-about-striking-off-of-company\/#Liabilities_of_Directors\" title=\"Liabilities of Directors\">Liabilities of Directors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.caindelhiindia.com\/blog\/all-about-striking-off-of-company\/#Companies_Ineligible_for_Strike_Off\" title=\"Companies Ineligible for Strike Off \">Companies Ineligible for Strike Off <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.caindelhiindia.com\/blog\/all-about-striking-off-of-company\/#Companies_which_cannot_strike_off_under_Section_248\" title=\"Companies which cannot strike off under Section 248-\">Companies which cannot strike off under Section 248-<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.caindelhiindia.com\/blog\/all-about-striking-off-of-company\/#Consequences_of_Non-Compliance_of_Company\" title=\"Consequences of Non-Compliance of Company\u00a0\">Consequences of Non-Compliance of Company\u00a0<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.caindelhiindia.com\/blog\/all-about-striking-off-of-company\/#Procedure_of_Revival_of_a_Struck-Off_Company\" title=\"Procedure of Revival of a Struck-Off Company:\">Procedure of Revival of a Struck-Off Company:<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.caindelhiindia.com\/blog\/all-about-striking-off-of-company\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Brief_Introduction_about_Striking_off_of_Company\"><\/span><span style=\"color: #000080;\"><strong>Brief Introduction about Striking off of Company<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Running\u00a0a corporation\u00a0is not a\u00a0cakewalk, sometimes the founders of\u00a0the corporate\u00a0take tough decisions\u00a0to shut\u00a0down\u00a0the entity.\u00a0During the\u00a0last 3 years, nearly 3.8 lakh companies are struck off under\u00a0the companies\u00a0Act, 2013.<\/li>\n<li>Many companies find it difficult to undertake their operation under the Covid 19 pandemic. There are two ways for closing\u00a0an organization,\u00a0strike off\u00a0and\u00a0winding up\u00a0of\u00a0the corporate.<\/li>\n<li>Additionally, some businesses\u00a0go for\u00a0termination and removal of name from the ROC\u00a0because it\u00a0is considered as a\u00a0viable option.\u00a0Thus, in order to provide assist such companies, Companies\u00a0Act provides\u00a0for the process\u00a0of striking off of the company under section 248 of the Companies Act, 2013.<\/li>\n<li>Here in this article, we are going to be specifically looking into the striking off companies under section 248, the process of Striking off under Companies Act, 2013, and therefore the documents required for strike off.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Meaning_of_Striking_Off_of_Company\"><\/span><span style=\"color: #000080;\"><strong>Meaning of Striking Off of Company <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>In a layman\u2019s language, it\u00a0is\u00a0said that\u00a0strike off\u00a0is withdrawing companies name from the Register of\u00a0the corporate.\u00a0the method\u00a0of striking off under Companies Act, 2013 is more\u00a0just like the\u00a0closure or\u00a0winding up\u00a0of\u00a0a corporation.\u00a0the corporate\u00a0no longer\u00a0exists after striking off and it cannot operate thereafter.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Governing_Section_of_Striking_Off_of_Company\"><\/span><span style=\"color: #000080;\"><strong>Governing Section of Striking Off of Company<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-4136\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/Governing-Section-of-Striking-Off-of-Company.jpg\" alt=\"Governing Section of Striking Off of Company\" width=\"982\" height=\"554\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/Governing-Section-of-Striking-Off-of-Company.jpg 560w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/Governing-Section-of-Striking-Off-of-Company-300x169.jpg 300w\" sizes=\"(max-width: 982px) 100vw, 982px\" \/><\/p>\n<ul>\n<li>Section 248 of\u00a0the companies\u00a0Act prescribes power to Registrar for removing the name of\u00a0the corporate\u00a0from the ROC. As per the section the Registrar has\u00a0the right\u00a0to strike off\u00a0the company\u2019s name.<\/li>\n<li>Firstly, on failure to commence the business within 1 year of incorporation.<\/li>\n<li>Secondly, the Registrar can remove the name if\u00a0the corporate\u00a0fails\u00a0to hold\u00a0business\u00a0for 2\u00a0financial years and has not made an application for the status of a dormant company in accordance with the section 455 of\u00a0Companies\u00a0Act, 2013. So, a dormant company\u00a0is basically a\u00a0company which does not undertake any activity and is termed as an inactive company. There\u00a0aren&#8217;t any\u00a0accounting transactions\u00a0regardless of\u00a0the registration under\u00a0the companies\u00a0Act.<\/li>\n<li>Section 248 in clause 2 states that the corporate can on its own by special resolution file an application for removal of the name of the corporate from the ROC. Companies even have to comply with Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016 for the method of striking off under the companies Act, 2013.<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-4143\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/ROC.png\" alt=\"ROC\" width=\"973\" height=\"641\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/ROC.png 624w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/ROC-300x198.png 300w\" sizes=\"(max-width: 973px) 100vw, 973px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"About_Rule_4_of_the_Companies_Removal_of_Names_of_Companies_from_the_Register_of_Companies_Rules_2016\"><\/span><span style=\"color: #000080;\"><strong>About Rule 4 of\u00a0the Companies\u00a0(Removal of Names of Companies from the Register of Companies) Rules, 2016<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Before the 2019 Amendment, there was a rule that\u00a0a corporation\u00a0can file an application for\u00a0strike off\u00a0in Form STK-2\u00a0providing\u00a0it&#8217;s\u00a0filed an overdue return form AOC-4 or AOC-4 XBRL\u00a0together with\u00a0Form MGT-7.<\/li>\n<li>the ROC issued a notification, asking some companies for submission of their overdue returns and also, in some cases, it was even accepting the strike-off application, without filling of overdue returns by the applicant company.<\/li>\n<li>Moreover, there was some\u00a0type of\u00a0discrepancy\u00a0within the\u00a0system, but after the 2019 amendment, the position\u00a0is far\u00a0clear.<\/li>\n<li>According to the amendment in Rule 4 of\u00a0the companies\u00a0(Removal of Names of Companies from the Register of Companies) Rules, 2016 in May 2019, companies cannot file\u00a0the applying\u00a0in form STK-2 unless\u00a0the corporate\u00a0has submitted the overdue returns in form AOC-4 or AOC-4 CBRL and Form MGT-7 up to\u00a0the end\u00a0of the\u00a0twelvemonth.<\/li>\n<li>AOC-4 is the financial statement and therefore the MGT-7 is the annual return of the corporate.<\/li>\n<li>this implies that the corporate should file the annual return till the corporate conducted its business.<\/li>\n<li>It&#8217;s\u00a0not mandatory to submit annual pending returns before striking off\u00a0and therefore the\u00a0company can proceed further without filing the annual return for the year\u00a0within which\u00a0they\u00a0didn&#8217;t\u00a0conduct business.<\/li>\n<li>Apart from this, the MCA decided to increase the fees for making striking off application and the same was increased to Rs. 10,000.<\/li>\n<li>This move was highly criticized because the Ministry has turned the incorporation fee to zero but the fee to exit has nearly doubled.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Modes_of_Striking_Off-_of_Company\"><\/span><span style=\"color: #000080;\"><strong>Modes\u00a0of Striking Off- of Company<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-4138\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/Modes-of-Striking-Off-of-Company.png\" alt=\"Modes\u00a0of Striking Off- of Company\" width=\"975\" height=\"371\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/Modes-of-Striking-Off-of-Company.png 820w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/Modes-of-Striking-Off-of-Company-300x114.png 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/Modes-of-Striking-Off-of-Company-768x292.png 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/Modes-of-Striking-Off-of-Company-800x304.png 800w\" sizes=\"(max-width: 975px) 100vw, 975px\" \/><\/p>\n<p>There are two modes for striking off\u00a0a corporation\u00a0in India under\u00a0the companies\u00a0Act-<\/p>\n<ul>\n<li>Strike-off by Registrar of\u00a0the corporate\u00a0under section 248(1): This section gives power to the Registrar to\u00a0strike off\u00a0a corporation\u00a0from the register of companies.\u00a0this can be\u00a0also the Suo-moto action on a part of\u00a0Registrar.<\/li>\n<li>Registrar of company can issue notice to the businesses in form STK-1, intimating about the withdrawal of the name of the corporate from the Register of the corporate.<\/li>\n<li>This notice will inform\u00a0the businesses\u00a0about the removal.\u00a0we will\u00a0also call this process as compulsory removal of the name from the ROC.<\/li>\n<\/ul>\n<p>Some of the grounds of striking off an organization include failure to commence business within one year of incorporation and not carrying business for 2 financial years and has not made an application for attaining a dormant company status.<\/p>\n<ul>\n<li>Striking off under Section 248(2): Under this, the Companies themselves\u00a0apply for the strike off\u00a0of their name from the ROC register. Such an application is required to be made in form STK-2 and the same be submitted only after the closure of their liabilities.<\/li>\n<li>They can\u00a0do so if they fail to commence business or\u00a0haven&#8217;t\u00a0done any business for the last two financial years. This process can start by passing special resolution\u00a0along with\u00a0consent of 75% of the members.<\/li>\n<\/ul>\n<h3><a href=\"https:\/\/www.caindelhiindia.com\/service\/revival-of-struck-off-companies\"><span style=\"color: #000080;\"><strong><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-4140\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/Strike-off-Chart-1-e1541926614698.jpg\" alt=\"Procedure of Strike Off of Company\" width=\"977\" height=\"874\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/Strike-off-Chart-1-e1541926614698.jpg 600w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/Strike-off-Chart-1-e1541926614698-300x269.jpg 300w\" sizes=\"(max-width: 977px) 100vw, 977px\" \/><\/strong><\/span><\/a><\/h3>\n<p>In accordance with section 248(1) of the companies act 2013, the ROC follows\u00a0the subsequent\u00a0process of striking off under\u00a0the companies\u00a0Act-<\/p>\n<ul>\n<li>Firstly, the Registrar shall send notice to\u00a0the corporate\u00a0in form STK-1 for notifying about the withdrawal of the name from the ROC.<\/li>\n<li>Secondly, the ROC shall\u00a0inspect\u00a0the representation of\u00a0the corporate. If the ROC\u00a0isn&#8217;t\u00a0satisfied with the representations, it can proceed further.\n<ul>\n<li>There should be a publication of the said notice\u00a0and therefore the\u00a0same shall be available on the official MCA website, the official gazette. Finally, it should\u00a0even be\u00a0printed\u00a0within the\u00a0newspapers in English and a vernacular language.<\/li>\n<li>The ROC also\u00a0needs to\u00a0intimate the regulatory authorities having jurisdiction about the removal or striking off\u00a0the corporate\u00a0name. If the authorities want,\u00a0they will\u00a0raise an objection or issue within 30 days of the said notice.<\/li>\n<li>According to section 248(5) the ROC after the expiry of the time\u00a0cross out\u00a0the name and publish the notice\u00a0within the\u00a0Official Gazette. Then\u00a0the corporate\u00a0will stand dissolved on the publication of the notice\u00a0within the\u00a0Official Gazette.<\/li>\n<li>Before striking off\u00a0the corporate, the Registrar shall\u00a0ensure\u00a0that\u00a0the corporate\u00a0has discharged all its liabilities and payments.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Process_of_Strike-off_Voluntarily\"><\/span><span style=\"color: #000080;\"><strong>Process of Strike-off Voluntarily<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The company\u00a0must\u00a0hold a\u00a0board meeting\u00a0and passes a resolution. After this,\u00a0the corporate\u00a0can make an application for\u00a0strike off\u00a0and therefore the\u00a0process of striking off under\u00a0the companies\u00a0Act will start.<\/li>\n<li>In\u00a0the following\u00a0step,\u00a0the corporate\u00a0should\u00a0necessarily close all the liabilities.<\/li>\n<li>Lastly,\u00a0the corporate\u00a0conducts a general meeting of the shareholders by passing a resolution backed by 75% of the members. Thereafter\u00a0the corporate\u00a0can file form MGT-14 within 30 days.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Documents_needed_for_Striking_Off_of_Company\"><\/span><span style=\"color: #000080;\"><strong>Documents needed for Striking Off of Company<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Companies\u00a0must\u00a0submit\u00a0the subsequent\u00a0documents\u00a0together with\u00a0the application\u00a0for starting\u00a0the method\u00a0of striking off under\u00a0the companies\u00a0Act-<\/p>\n<ul>\n<li>Duly notarized Indemnity bond in the prescribed Form STK-3.<\/li>\n<li>Statement of liabilities or accounts consisting of the assets of\u00a0the corporate\u00a0together with\u00a0the liabilities in form STK-8.<\/li>\n<li>An affidavit in Form STK 4.<\/li>\n<li>Certified Copy of Special Resolution, being duly signed by\u00a0the directors.<\/li>\n<li>The statement stating about pending litigations of\u00a0the corporate.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"After-Effects_of_Dissolution\"><\/span><span style=\"color: #000080;\"><strong>After-Effects of Dissolution<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>According to section 250 of\u00a0the companies\u00a0Act, if\u00a0an organization\u00a0dissolves under section 248,\u00a0they have\u00a0to stop\u00a0function immediately on the date mentioned\u00a0within the\u00a0notice of dissolution.<\/li>\n<li>Additionally, the certificate of incorporation\u00a0also will\u00a0stand cancelled.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Liabilities_of_Directors\"><\/span><span style=\"color: #000080;\"><strong>Liabilities of Directors<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The obligations of\u00a0the directors\u00a0and other authoritative officers shall proceed and\u00a0it&#8217;d\u00a0be enforced as if\u00a0the corporate\u00a0isn&#8217;t\u00a0dissolved.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Companies_Ineligible_for_Strike_Off\"><\/span><span style=\"color: #000080;\"><strong>Companies Ineligible for Strike Off <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>According to Section 249 of the Act, no company can make an application under section 248(2) if it&#8217;s changed the name, shifted registered office from one state to a different, has made disposal of property, engaged in the other activity apart from necessary within the past three months.<\/li>\n<li>Companies cannot file an application if they need made an application for sanctioning a compromise or arrangement and therefore the matter isn&#8217;t yet decided. And<\/li>\n<li>Where the corporate is winded up in accordance with the Insolvency and Bankruptcy Code, 2016.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Companies_which_cannot_strike_off_under_Section_248\"><\/span><span style=\"color: #000080;\"><strong>Companies which cannot strike off under Section 248-<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Listed companies\u00a0and companies\u00a0which are delisted\u00a0due to\u00a0non-compliance of the listing regulations or agreements.<\/li>\n<li>Companies failed to\u00a0respond to\u00a0the notice served under section 248.<\/li>\n<li>Vanishing companies\u00a0and corporations\u00a0within which\u00a0investigation\u00a0is going\u00a0on or pending\u00a0and the\u00a0proceedings are pending in Court.<\/li>\n<li>Companies which\u00a0haven&#8217;t\u00a0furnished the follow-up instructions on the reports under section 208.<\/li>\n<li>Lastly, section 8 companies.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Consequences_of_Non-Compliance_of_Company\"><\/span><span style=\"color: #000080;\"><span style=\"color: #000080;\">Consequences of Non-<a href=\"https:\/\/www.caindelhiindia.com\/service\/annual-compliance-of-private-limited\">Compliance of <span style=\"font-size: 18.72px;\">Company<\/span>\u00a0<\/a><\/span><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>If\u00a0a corporation\u00a0fails to\u00a0go with\u00a0Section 455 of the Act\u00a0and companies\u00a0(Miscellaneous) Rules, 2014 i.e., filing of annual return within 30 days from the\u00a0yr\u00a0ending, the ROC will\u00a0strike off\u00a0the name of\u00a0the corporate.<\/li>\n<li>Moreover, there&#8217;s punishment under section 450 if the corporate defaults to fits the necessities. Additionally, there&#8217;s a punishment for company, in addition because the directors, for violation of the companies Act.<\/li>\n<\/ul>\n<h2 data-fontsize=\"20\" data-lineheight=\"24\"><span class=\"ez-toc-section\" id=\"Procedure_of_Revival_of_a_Struck-Off_Company\"><\/span><span style=\"color: #000080;\"><b>Procedure of Revival of a Struck-Off Company:<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-4141\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/struck-company-procedure-.jpg\" alt=\"Procedure of Revival of a Struck-Off Company:\" width=\"978\" height=\"1594\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/struck-company-procedure-.jpg 626w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/struck-company-procedure--184x300.jpg 184w\" sizes=\"(max-width: 978px) 100vw, 978px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><span style=\"color: #000080;\"><strong>Conclusion<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The process of striking off under Companies Act, 2013\u00a0could be a\u00a0viable alternative for companies.<\/li>\n<li>it&#8217;s\u00a0the only\u00a0option for company\u00a0searching for\u00a0a mode for bringing\u00a0the corporate\u00a0to an end.\u00a0the corporate\u00a0and therefore the\u00a0ROC both have\u00a0the right\u00a0to start\u00a0the method.<\/li>\n<li>Striking off\u00a0a corporation\u00a0was brought\u00a0good\u00a0to encourage\u00a0easy\u00a0doing business\u00a0together with\u00a0ease in closure.<\/li>\n<\/ul>\n<p>Also read : <a href=\"https:\/\/carajput.com\/blog\/compliance-for-foreign-subsidiary-companies-in-india\/\">Compliance for Foreign Subsidiary Companies in India<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Brief Introduction about Striking off of Company Running\u00a0a corporation\u00a0is not a\u00a0cakewalk, sometimes the founders of\u00a0the corporate\u00a0take tough decisions\u00a0to shut\u00a0down\u00a0the entity.\u00a0During the\u00a0last 3 years, nearly 3.8 lakh companies are struck off under\u00a0the companies\u00a0Act, 2013. Many companies find it difficult to undertake their operation under the Covid 19 pandemic. There are two ways for closing\u00a0an organization,\u00a0strike off\u00a0and\u00a0winding &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[647],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/4130"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=4130"}],"version-history":[{"count":5,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/4130\/revisions"}],"predecessor-version":[{"id":4134,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/4130\/revisions\/4134"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=4130"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=4130"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=4130"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}