Consequences of Company Strike Off

• Company Ceases to Exist: The company is legally dissolved and ceases to exist.
• Unclaimed Assets Vest with the Government: Any remaining assets become government property.
• Directors Still Liable for Past Acts: Directors remain liable for any fraudulent activities conducted during the company’s existence.
• Name Restriction: The company’s name becomes unavailable for use by others.
• Reactivation Complicated: Restoring a struck-off company requires an appeal to the National Company Law Tribunal (NCLT).

Common Challenges in Strike Off

• Unpaid Liabilities: All dues must be cleared before applying.
• Incomplete Documentation: Missing or incorrect documents can lead to rejection.
• Pending Litigation: Ongoing legal cases can delay or prevent strike off.
• Lack of Shareholder Approval: Failure to obtain necessary approvals can halt the process.
• ROC Processing Delays: Delays may occur due to administrative processing times.

Step-by-Step Process to Strike Off a Company

• Board Meeting: Convene a board meeting to pass a resolution for striking off the company and authorize a director to file the application.
• Settle Liabilities: Ensure all liabilities, including taxes, dues, and loans, are settled.
• Shareholders’ Approval: Obtain approval from shareholders by passing a special resolution (if applicable).
• Close Registrations: Surrender GST registration and close all bank accounts.
• Prepare Documents: Gather all necessary documents as listed above.
• File with MCA via C-PACE: Submit Form STK-2 along with the required documents and pay the prescribed fee of ₹10,000 through the MCA portal.
• ROC Notice & Objection Period: The ROC will publish a notice in Form STK-6, allowing the public 30 days to raise objections.
• Final Strike Off (Form STK-7): If no objections are received, the ROC will issue a notice in Form STK-7, confirming the company’s name has been struck off and it stands dissolved.