COMPANY CLOSURE

The Company may file the application, on the following grounds for removal of name from register of Companies

1. a company has failed to commence its business within one year of its incorporation; or
2.  a company is not carrying on any business or operation for a period of two immediately preceding financial years and has not made any application within such period for obtaining the status of a dormant company

PROCESS OF STRIKING OFF

• Duly completed application need to be field in Form STK-2 digitally signed by the director of the company authorised for this purpose.
• The application need to be certified by a Company Secretary or Chartered Accountant or Cost Accountant in whole time practice.

Action taken by the Registrar after filing the application

•   The Registrar shall on receipt of application serve a public notice.
• In the case of a company regulated under a special Act, approval of the regulatory  body constituted or established under that Act shall also be obtained and enclosed with the application.
• A notice issued shall be published in the prescribed manner and also in the Official Gazette for the information of the general public

Once all the procedures completed, the registrar shall publish a notice in prescribed format in the Official Gazette and dissolve the company.

COMPANIES THAT CANNOT BE REMOVED FROM THE REGISTER OF COMPANIES

• listed companies;
• Companies delisted due to non-compliance of listing regulations or listing agreement or any other statutory laws;
• Vanishing companies;
• companies where inspection or investigation is ordered and being carried out or actions still pending or were completed but prosecutions are still pending in the Court;
• Companies where notices under section 234 of the Companies Act, 1956 or section 206 or section 207 of the Act been issued by the Registrar or Inspector and reply thereto is pending or report under section 208 has not been submitted or follow up of instructions on report is pending or where any prosecution arising out of such inquiry or scrutiny, if any, is pending with the Court;
• Companies against which any prosecution for an offence is pending in any court;
• Companies whose application for compounding is pending before the competent authority for offences committed by the company or any of its officers in default;
• Companies which have accepted public deposits which are either outstanding or   default in repayment;
• Companies having charges which are pending for satisfaction; and
• Companies registered under section 25 of the Companies Act, 1956 or section 8 of the Act.