Do you own a Company? Do you want to close down your Company? there are many questions that might be arising about strike-off Companies in your mind. Here we have made a compilation of the Most Frequently Asked Questions FAQs on Strike Off Company:
Ans. The closure of a limited company depends on whether it is solvent (able to pay its bills) or insolvent (unable to pay its bills). If it is solvent, the easiest way to close it is for the directors to apply to Companies House to have it struck off the register. Alternatively, you can start a members’ voluntary liquidation. If your company is insolvent, the directors can propose a creditors’ voluntary liquidation process.
This course of action will require at least 75% of the voting shareholders (by the value of their shares) to agree to the closure by passing a winding-up resolution. In certain situations, a company can be forced to close by its creditors or HMRC.
Ans. Strike Off means removing the name of the Company from the Register of Companies maintained by the Registrar of Companies.
It is more like a Closure of the Company and the Company will not be in existence after being Struck Off and cannot perform any operation thereafter.
Ans. Shutting down a company is a long and complicated procedure. A Private Limited Company can be closed down in various manners depending on the requirement of the owner.
A company can be sold by transferring the majority of shares to the person best suited for the company. The procedure of eventually winds up the company, but only the majority of the shares are transferred with the responsibility of stocks.
Any company that wants to strike off its name from the registrar of the company can declare itself defunct by applying Form FTE and then the company can be shut down by the registrar of the company.
Winding up of the private limited company is necessary in the case where the company needs to conclude its business or due to bankruptcy. The winding-up method can be initiated intentionally by the shareholders or creditors, or it can also be done on the order of the tribunal (Compulsory Winding-up ).
If the company is not dissolved and the assets are not collected as per the legal proceedings, the company is considered in operation, and hence the directors will be liable for completing all the compliances associated with the private limited company.
Ans. Companies may pursue a strike-off by following each of the following specified steps:
The passing of Board Resolutions has been mandated for major enactments in the corporate sphere.
A company desirous of a strike-off must have closed off all its liabilities.
A general meeting of shareholders should be held by the company by passing a resolution for striking off the name of the Company.
Companies on the pursuit of strike-off must file an application to the Registrar of Companies (ROC), accompanied by the following documents:
If a company confirms its dissolvement, it shall cease its operations as a company from the date of such dissolvement, and the Certificate of Incorporation issued to it by the ROC shall be deemed to have been canceled, except for the discharge of any existing liabilities or obligations.
Ans. It usually takes at least 3 months for a company to be officially dissolved, but the length of time can vary considerably if the process is complex. Generally, however, a company will cease to exist no less than 3 months of the winding-up notice being advertised in the Gazette.
Ans. There are serious consequences for directors of companies which are involuntarily struck off, particularly if the company is still trading.
Ans. Step by Step procedure for Revival of Company:
Ans. The company can be struck off under the following circumstances:
In such circumstances, either the registrar of companies will strike off the name of the company on his own or the company voluntarily applies for the strike off.
Ans. When a company is struck off, the name would be removed from the company register and it can not trade, sell its assets or make payments or even it can not get involved in any other business activities. The name of the company would be made available for new companies to use.
Ans. The Company which is likely to be struck off must file an application to the registrar of the companies, along with the following documents:
Ans: The company can be struck off under the following circumstances:
The company can not be struck off if in the last three months:
Ans. Yes
INC-20A: For all company registered after 2nd Nov 2018.
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can i name my as alif trading company. this company is already strike off. can i use strike off company name
Hello Ruqayya Mirza,
One cannot use the company name for 20 years from the year the company has been Struck off. Please contact us at +919643203209 / mail us at info@ebizfiling.com, if you need any additional information or assistance.
Thanks for connecting.