Strikeoff Company
Striking off a company, as you mentioned, is a process for removing the name of a company from the Register of Companies (RoC), effectively closing it down without undergoing the more complex process of winding up. This can be initiated either by the Registrar of Companies (suo-moto) under Section 248(1) of the Companies Act, 2013, or by the company itself under Section 248(2).
Since you're asking about an "event-based compliance," let's focus on the voluntary strike-off initiated by the company. Here's a step-by-step overview for a company in Vizianagaram, Andhra Pradesh (or anywhere in India), as of Friday, May 16, 2025:
Eligibility for Voluntary Strike-Off:
A company can apply for strike-off if it meets the following criteria:
- It has not commenced any business or operation since incorporation OR
- It is not carrying on any business or operation for the past two immediately preceding financial years and has not applied for dormant status.
- It has cleared all its liabilities.
- It has closed all its bank accounts.
- It does not have any assets.
- It is not involved in any legal proceedings.
- It has filed all overdue financial statements (AOC-4) and annual returns (MGT-7) up to the end of the financial year in which it ceased to operate.
Procedure for Voluntary Strike-Off (Section 248(2)):
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Convene a Board Meeting: The Board of Directors needs to pass a resolution approving the decision to strike off the company and authorizing a director to take necessary actions.
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Extinguish All Liabilities: Before applying, the company must ensure that all its debts and liabilities are cleared. This includes payments to creditors, employees, and statutory dues.
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Obtain Shareholders' Approval: Hold an Extraordinary General Meeting (EGM) and pass a Special Resolution (requiring at least 75% of the members' votes) approving the strike-off. Alternatively, obtain the consent of 75% of the members in terms of paid-up share capital.
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File Form MGT-14: Within 30 days of passing the Special Resolution (if applicable), file Form MGT-14 with the RoC, attaching a copy of the resolution.