I want to strike off my defunct private limited company in Mumbai — what is the procedure?
DI Asked by Dinesh Rathod from India
Quick Answer
To strike off a defunct private limited company in Mumbai, you must follow a detailed procedure as outlined under the Companies Act, 2013. The process can be initiated under Section 248 of the Companies Act, 2013, which allows a company to apply for striking off its name from the Register of Companies if it has not commenced any business or has ceased operations for a period of two years. Here are
Detailed Legal Analysis
To strike off a defunct private limited company in Mumbai, you must follow a detailed procedure as outlined under the Companies Act, 2013.
The process can be initiated under Section 248 of the Companies Act, 2013, which allows a company to apply for striking off its name from the Register of Companies if it has not commenced any business or has ceased operations for a period of two years.
Here are the steps to follow for striking off your defunct private limited company:
- Hold a Board Meeting: Convene a Board meeting to discuss the proposal for striking off the company. Pass a resolution to approve the striking off.
- Prepare Financial Statements: Ensure that the company’s financial statements are prepared and that there are no outstanding liabilities or pending disputes.
- Obtain Shareholder Approval: Conduct a general meeting of shareholders and pass a special resolution for the striking off of the company.
- File Form STK-2: File Form STK-2 with the Registrar of Companies (RoC) along with the required documents, which include:
- Copy of the Board resolution.
- Copy of the special resolution.
- Affidavit from the directors confirming that the company is not carrying on any business.
- Indemnity bond from the directors.
- Statement of assets and liabilities.
- Advertisement in Official Gazette: The RoC will publish a notice in the Official Gazette regarding the proposed striking off, inviting any objections.
- Wait for Objections: Allow a period of 30 days for any objections to be raised against the striking off.
- Certificate of Striking Off: If no objections are received, the RoC will issue a certificate of striking off, officially removing the company from the register.
Additionally, it is important to comply with any tax obligations and file necessary returns before initiating the strike-off process. Ensure that you consult with a professional for legal advice tailored to your specific situation, as the process may vary based on individual circumstances.
Relevant laws include:
- Companies Act, 2013 - Section 248
- Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016
Legal Provisions Referenced
Verify the current statutory text at India Code (the official repository of Indian legislation) or the Legislative Department. This answer is general legal information, not advice on your specific matter.
Disclaimer: AI-generated for educational purposes only. Does not constitute legal advice. Consult a qualified practitioner.