Introduction to Prospect Legal

At Prospect Legal, we specialize in corporate law and legal strategies for businesses undergoing dissolution. If you are a small business owner looking for a cost-effective way to close your company, striking off your business from the official register is a legally compliant and efficient solution. Our expert team ensures that the process is carried out smoothly while mitigating any potential legal risks for directors and shareholders.

Where You Can Find Remedies?

Striking off a company is governed by the Companies Act, 2013, and the process is overseen by the Registrar of Companies (ROC). Ensuring compliance with regulatory guidelines is crucial to avoid penalties or legal repercussions.

For expert legal guidance, contact Prospect Legal today.
📞 Call us at 7000-12-7225

Understanding the Striking Off Process

Striking off a company is a structured legal procedure that involves multiple steps to ensure compliance. The process can be classified into two categories:

1. Voluntary Striking Off (By Company Application)

• The directors voluntarily apply for striking off when the company is no longer operational.
• A resolution must be passed by shareholders approving the closure.
• An application is filed using Form STK-2 along with necessary documents.
• The ROC issues a public notice, and after the mandatory waiting period, the company is officially struck off.

2. Compulsory Striking Off (By Registrar of Companies)

• The ROC can initiate the process if a company is inactive and has not filed its returns.
• A notice is sent to the company, giving it an opportunity to respond.
• If no response is received, the company’s name is removed from the register.

Process of Remedy Through Prospect Legal

At Prospect Legal, we provide end-to-end legal solutions to ensure a hassle-free company closure. Our process includes:

Step 1: Eligibility Assessment & Legal Consultation

• Evaluate if the company meets the legal criteria for striking off.
• Assess any pending financial obligations or legal proceedings.
• Recommend the best course of action for a smooth closure.

Step 2: Compliance & Documentation

• Draft and file the Board Resolution & Shareholder Consent.
• Prepare Form STK-2 and supporting documents such as director affidavits and indemnity bonds.
• Verify tax filings and clearance certificates to prevent future liabilities.

Step 3: Filing Application with ROC

• Submit the formal request for striking off to the ROC.
• Ensure compliance with documentation requirements.
• Monitor and respond to any objections or clarifications.

Step 4: Public Notice & Waiting Period

• The ROC publishes a public notice to invite objections.
• A mandatory waiting period of 30 days follows for any claims.
• If no objections arise, the company is struck off the register.

Step 5: Confirmation of Strike Off & Legal Closure

• The ROC officially removes the company’s name from the register.
• A formal notification is issued confirming dissolution.
• Prospect Legal ensures clients receive all necessary closure documents.

For professional legal assistance, contact Prospect Legal today.
📞 Call us at 7000-12-7225

Legal Protection Under Section 248 of the Companies Act, 2013

The process of striking off a company falls under Section 248 of the Companies Act, 2013, which provides for voluntary removal of a company’s name from the official register under specific conditions.

Eligibility Criteria for Striking Off Under Section 248

A company can apply for striking off if:

• It has not commenced business within one year of incorporation.
• It has been inactive for the last two years and has not filed financial statements or annual returns during this period.
• It has no outstanding liabilities, pending litigations, or active contracts.

Powers of the Registrar of Companies (ROC)

If the application meets the eligibility criteria, the ROC can:

• Accept or Reject the Application – If any discrepancies or objections arise, the application may be denied.
• Issue a Public Notice – To allow stakeholders or creditors to raise objections.
• Strike Off the Company’s Name – Once all clearances are obtained, the company is legally dissolved.