Shutting a business is ambiguous especially when you are part of a Private Limited Company. Sealing a Pvt. Ltd. can be rendered in 3 approaches:
- Sell the company
- Declare the company defunct and shut it down.
- Wind up and dissolve the company.
In the consequent article, we will be focusing on striking off a Company.
Defunct the Company
Section to deal with closure of companies is section 248, of the Companies Act, 2013-
A company who plans to abate its name from the register of Registrar of Company (ROC) can apply via Form FTE for abatement of its name from the register maintained by ROC.
The following process can be followed in the manner:
- Board Meeting is required for the purpose of discussing the matter of strike off and approving notice for calling a meeting of the shareholder of the company containing an explanatory statement under Section 102 of said Act.
- A Chartered Accountant will be needed to prepare the Statement of Accounts and the liabilities of the company will write off with the assets of the company and same will required to be placed before the management for their approval.
- After the Board Meeting, notice is issued to all the shareholder of the company.
- After holding the EGM the resolution of Shareholder will be required to be filed in Form MGT-14.
- Once the Resolution filed with ROC take affidavit as required in Form STK-3 and Indemnity Bond in STK-4 from the Directors of the Company and Statement of Accounts is also required to be signed by at least 2 directors of the company, one of the director shall be Managing Director, if any.
- File application form STK-2 for striking off the name of the company along with aforesaid mentioned documents.
- The application will be processed under approval route and take at least 1 month unless an objection is raised by concerned ROC.
- Once the form is approved by ROC same will be made available at Ministry of Corporate Affairs (MCA) website and publish in the official gazette and from the date of publication, it will stand dissolved.If the ROC is satisfied with the application given current laws, then it will strike the name of the company and declare it as defunct. Following the same, a notice in this regard will be published in the official gazette by ROC. The approval of form FTE will take at least 1 month from the date of filing to be approved.
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