Running a business comes with its own challenges. Sometimes when things do not work out a business may have to be shut down. There can be several reasons to close or wind up the company. Here are four ways in which a private limited company can be closed.
With the approval of 3/4 shareholders, A company which is not carrying any business for the past two financial years and the company has not obtained the company status as Closure.
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The is empowered to close a company that has not started its operations or if started, has become defunct and has been inactive for over two years. The application of such companies are filed in the prescribed form STK-2, the government fee payable on the STK-2 Form is Rs. 10,000/
To file the form stk-2 for company closure, a shareholders meeting must be called to decide about the closure At least 75% of voting rights are required to close a company
All shareholders and directors have to sign an affidavit and documents filed are correct and true in an indemnity bond that the directors shall pay if any liability comes up.
Form STK-2 an application for removal of name of the company shall be submitted to the Registrar of Companies shall be signed by the director and need to be certified by a professional by paying the govt fees for approval purposes and SRN shall be generated.
After filing an application by the company for company strike off, the ROC shall publish a public notice to strike off from the general public and regulatory authorities. In the span of time period If there are no objections received from the general public or government authorities, The Register of Companies will proceed to remove the name of the company.
Strike Off of a Company is a formal procedure of company closure by removing the name from the Register of Companies (ROC). The company cannot perform any business activity after the company status changed to Struck off. Strike off can be initiated either voluntarily by the Company or Registrar of Companies on grounds of default or non-compliance.
E-form STK-2 is used by companies for making an application to the Registrar of Companies for strike off or removal of its name.
For the Company closure it takes around 10-15 days for making an e-form application for company Strike off. After that, it will take 12 to 18 months for the processing and completion of the process by ROC.
Yes, the Digital Signature of a director is mandatory for form Stk-2.
Yes, the Company current account is required to be closed before filing of Form STK-2.
Yes, before Company Closure a company has to file Form INC 20A
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