In case you are thinking of winding up of your company but do want to carry on the long procedure required for liquidation of company, then please ensure the following conditions are completed so you can go for a quick, less tiring route of striking off of companies name from register.

Name of the company can be struck off under two conditions as covered under sec- 248

  1. If the registrar has reasonable cause to believe that the name needs to struck off
  2. If the company applies for the same

Both the conditions are covered here under Sec 248 of Companies Act.

Power of Registrar to remove name of company from register of companies

Sec 248 (1) Where the Registrar has reasonable cause to believe that—

(a) a company has failed to commence its business within one year of its incorporation;

(b) the subscribers to the memorandum have not paid the subscription which they had undertaken to pay within a period of 180 days from the date of incorporation of a company and a declaration under sub-section (1) of section 11 to this effect has not been filed within 180 of its incorporation;

or

(c) a company is not carrying on any business or operation for a period of 2 immediately preceding financial years and has not made any application within such period for obtaining the status of a dormant company under section 455,

In case company wants to apply for removal of name from register of companies

Sec 248 (2) states the conditions when a company may apply for removal of name from register in For STK-2.

  1. A company should extinguish ALL its liabilities and the assets should also be removed for eg: if there is a bank account with the company it is to be closed before application.
  2. In case of pending liabilities arising out of process or after the process the directors should take an undertaking to discharge those liabilities.
  3. If your company had not commenced activity since incorporation or is not active for two years the company can file an application under form STK-2 after approval by Special Resolution i.e. by 75% members (paid-up capital) in the prescribed manner.

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