My private limited company is not doing well and we want to close it. What is the procedure for striking off the company?

Detailed Legal Analysis

To close your private limited company in Meerut, you can initiate the process of striking off the company under Section 248 of the Companies Act, 2013.

The procedure for striking off a private limited company involves several key steps, which are outlined below:

• Board Resolution: The first step is to hold a board meeting to pass a resolution to strike off the company. This requires a majority vote from the board members.
• Clearance of Liabilities: Ensure that all liabilities such as debts, dues, and statutory obligations are settled. The company should not have any outstanding liabilities at the time of striking off.
• Consent of Shareholders: Obtain consent from the shareholders for the proposed striking off. A special resolution may be required if the Articles of Association demand it.
• Filing of Form STK-2: Prepare and file Form STK-2 with the Registrar of Companies (RoC). This form should include:
  • The company’s name, registration number, and address.
  • A statement of accounts showing no pending liabilities.
  • Details of the board resolution and shareholder consent.
  • Affidavit by directors confirming that the company has no debts and is not involved in any ongoing litigation.
• Payment of Fees: Pay the requisite fees as prescribed under the Companies (Registration Offices and Fees) Rules, 2014, while filing Form STK-2.
• Publication of Notice: Upon receiving the application, the RoC will publish a notice in the official gazette and may also send a notice to the company’s registered office, inviting objections, if any.
• Striking Off Order: If there are no objections, the RoC will strike off the name of the company from the register and issue a certificate of striking off, which will serve as conclusive evidence that the company is dissolved.

It is important to ensure compliance with all statutory requirements during this process to avoid any legal complications. The relevant laws governing this process include the Companies Act, 2013, particularly Section 248, and the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016.