What is the meaning of winding up/closure of Defunct Company?
Strike-off of company from registrar of companies is an opportunity given to defunct companies or those who wants to voluntarily shut down their company can file their application with roc under section 248. This is one of the best and easiest way where companies can struck off its name without any hassle by properly arranging all the required documents as per the law.
Reason for Strike off the name of Companies from the Register of Registrar of Companies:
The company can go for strike off voluntarily by filing Suo-motto Application by the Company for Striking off [Section 248(2)] to RoC as procedure laid down under Companies Act, 2013 on either of following grounds:
- If a company has failed to commence its business within one year of its incorporation or;
- A company is not carrying on any business or operation for a period of two immediately preceding financial years and has not made any application within such period for obtaining the status of a dormant company under section 455.
Steps Involved for Strike off the name of Companies from the Register of Registrar of Companies
Step-1 Conducting of Meeting of Board of Directors of the Company for Striking off the name of the Company
The Board Meeting is required conducted for the purpose of passing the resolution relating to strike off the name of the company and to authorize any director of the company to file application with registrar of companies. Approve and Issue notice for calling meeting of shareholder of the company. After Passing Board resolution the company is required to extinguish all its liabilities.
Step-2 Preparation of Statement of Accounts
Preparation of Statement of Accounts and the liabilities of the company will be write off with the assets of the company and same will required to be placed before the management for their approval.
Step-3 Conducting of Meeting of Members of the Company for passing of special resolution for Striking off the name of the Company
The next step is to hold Extra-Ordinary General Meeting of Members of the Company and pass special resolution for striking off the company after taking approval from seventy-five percent of the members as per paid up share capital of the company.
Step-4 Filing of Form MGT-14 with RoC.
The next step after passing of special resolution is to file Form MGT-14 within 30 days of passing of Special Resolution at Extra-Ordinary General Meeting of the Members.
Step-5 Preparation of Affidavits and Indemnity Bonds
The next step after filing of Form MGT-14 is to take affidavit as required in Form STK-3 and Indemnity Bond in STK-4 from the Directors of the Company and Statement of Accounts is also required to be signed by at least two directors of the company, one of the director shall be Managing Director, if any.
Step-6 Filing of Application with RoC
The next step is to file Application to strike off the name of the Company along with all requisite attachment with RoC in Form STK-2.
Step-7 Approval and publication in official gazette
The application will be processed under approval route and take atleast six month unless any objection is raised by concerned ROC. Once the form is approved by ROC same will be made available at MCA site and publish in the official gazette and from the date of publication it will stand dissolved.
Documents Required for Company Closure:
- List of Directors and Shareholders.
- Copy of signed statement of accounts.
- Copy of Company’s Bank Statements.
- Id and Address proof copies of Directors.
- MOA and AOA of the Company.
- Digital Signature (DSC) of anyone directors of the Company