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A company strike-off is a formal process that involves dissolving a company and removing it from the official registry of companies maintained by the Registrar of Companies (ROC). This procedure is typically initiated when a business is no longer active or fails to comply with the necessary legal requirements.

Once a company is struck off, it ceases to exist in its current form, and its operations are permanently halted. The company’s assets are transferred to the government, which will use those funds to settle any remaining debts. After the liabilities are cleared, any remaining funds are distributed to the shareholders based on their ownership in the company.

It's important to note that once a company has been struck off, it cannot be reinstated under the same identity. However, it is possible to start a new company using the same business name, provided all activities are conducted under this newly formed entity.

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A Voluntary Strike-Off is a formal process that allows a company’s directors to close the business and remove it from the official company register. This process is available for companies of all sizes, from small private firms to large corporations. When a company undergoes a voluntary strike-off, its legal existence comes to an end.

This option is suitable for businesses that have stopped trading or no longer exist. However, it is not meant for companies that are still active or those facing financial trouble. If a company is struggling financially, other solutions such as liquidation or administration would be more appropriate than a voluntary strike-off.

A Registrar of Companies (ROC) Strike-Off is a method used in India to legally dissolve a business and remove it from the records of the Registrar. The ROC strike-off process is initiated when a company is no longer operational or has ceased its business activities. While the process remains consistent across India, there can be slight variations depending on the state or union territory where the company is registered.

Once the company’s name is removed from the Registrar’s records, it officially ceases to exist. Any remaining assets are typically distributed among creditors, in accordance with the terms laid out in the strike-off order. The directors of the company remain liable for any outstanding debts incurred while the business was operational.

This strike-off process is a straightforward and cost-effective method for closing a company that is no longer active. It offers an alternative to winding up a company through more expensive and complex legal proceedings.

The process of striking off a company from the register, while relatively straightforward, involves a series of crucial steps. Following these ensures full compliance with legal and regulatory standards.

1. Verify Compliance with the Companies Act 2013

The first step is to ensure that your company has met all the necessary requirements under the Companies Act of 2013. This includes compliance with company regulations and any special provisions specific to your business.

2. Ensure Statutory Filings are Complete

Confirm that all statutory filings have been submitted. This includes annual returns and financial statements. Additionally, make sure that the company’s books of accounts are up-to-date and accurate.

3. Clear All Financial Obligations

Ensure that all taxes, dues, and outstanding payments related to the company are fully settled. This step includes paying off liabilities like government dues, creditor payments, and employee wages, if applicable.

4. Settle Liabilities with Creditors

Check that all creditors have been paid and that there are no outstanding debts. It’s important to resolve any creditor issues to prevent complications during the strike-off process.

5. Notify Stakeholders

Make sure that directors, shareholders, employees, and other stakeholders are informed of the intention to strike off the company. This notification ensures transparency and avoids potential disputes.

6. Obtain Necessary Approvals

For certain industries or situations, additional approvals from regulatory bodies or government departments may be required. Be sure to gather these approvals before proceeding.

7. Prepare the Required Documents

Ensure all necessary documents, such as the Memorandum and Articles of Association, board resolutions, Form STK-2, and updated financial records, are ready. Proper documentation is key to a smooth strike-off process.

8. Complete the Application Form (Form STK-2)

Fill out the appropriate strike-off application form, which is Form STK-2 in India. This form is submitted to the Registrar of Companies (ROC) along with a nominal fee.

9. Submit the Application to the ROC

Once all documents and the application form are ready, submit them to the Registrar of Companies. It’s critical to ensure that everything is accurate to avoid delays.

10. Await the ROC’s Decision

After submission, wait for the ROC to review the application. If the strike-off is approved, the ROC will publish a notice in the government’s official gazette.

11. Publish the Strike-Off Notice

Once approved, the notice of strike-off will be officially published in the government gazette, marking the legal recognition of the company’s dissolution.

12. Inform Creditors

Notify all creditors of the company’s strike-off. This ensures transparency and compliance with legal obligations towards creditors.

13. Finalize the Strike-Off Process

Submit confirmation that all the necessary steps have been completed to the ROC. Once everything is reviewed and verified, the striking-off process will be finalized.

14. Completion of Strike-Off

Once all documentation has been submitted and reviewed by the ROC, the company will officially be struck off from the register.

  • For Accounts Subject to Audit: The deadline is October 31st of the assessment year.
  • When Reporting with Form No. 3CEB: The due date is November 30th of the assessment year.
  • For Non-Audited Accounts: The deadline is July 31st of the assessment year.

How to Complete the ITR 6 Form

To ensure a smooth and accurate filing process for the ITR-6 Form, follow these recommended steps provided by the Income Tax Department:

  1. Part A
  2. Schedules
  3. Part B
  4. Verification

Adhering to this sequence helps organize your information and simplifies the completion of your income tax return.

No Documents Required

When filing the ITR-6 form, you do not need to attach any documents, such as TDS certificates. However, it is important to reconcile the taxes deducted, collected, or paid on your behalf by comparing them with your Tax Credit Statement Form 26AS.

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