Company Closure

When the company is incorporated, a Certificate of Incorporation is issued by the Registrar of Companies in acknowledgment of the existence of the company. Once the name of the company is entered into the registrar of the company, it cannot be removed unless the company itself applies for it or the closure is processed by law. When the corporate fails to commence its business or fails to submit yearly returns, the registrar may sua moto remove the corporate by sending a notice to its registered office address.

Strike Off Company - Meaning

If we pass the literal meaning of the strike-off, it denotes removing the name of the company from the Register of Companies maintained by the Registrar of Company. It's more like a closure of the company and thus the corporate won't be alive after being Struck Off and can't perform any operation thereafter.

It usually takes a minimum of three months for an organization to be officially dissolved, but the length of time can vary considerably if the tactic is complex. However, a corporation will cease to exist in not but 3 months from the winding-up notice being advertised within the Gazette. However, some companies may apply under means exit mode for Striking Off its name.

Companies That Aren't Eligible For A Closure

As per the businesses Law, a corporation won't be eligible for cross off under the following circumstances:

• The corporate is incorporated after 2nd November 2015 but it's not filed 20A.
• One year isn't completed since incorporation.
• For ongoing companies having business transactions within the last 1-2 years.
• DIN is deactivated.
• Any director is disqualified.
• Company has already received notice from ROC for closure.
• Any ongoing litigation is pending.

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