Do you own a Company? Do you want to close down your Company? There are many questions that might be arising about strike off Company in your mind. Here we have made a compilation of the Most Frequently Asked questions.

2. Do you own a Company?
Do you want to close down your Company?
There are many questions that might be arising
about strike off Company in your mind.
Here we have made a compilation of the Most
Frequently Asked questions.

3. Q.1)How can I close my Private Limited Company?
• The closure of a limited company depends
on whether it is solvent (able to pay its
bills) or insolvent (unable to pay its bills).
• If it is solvent, the easiest way to close it is
for the directors to apply to Companies
House to have it company struck off the
register. Alternatively, you can start a
members’ voluntary liquidation.
• If your company is insolvent, the directors
can propose a creditors’ voluntary
liquidation process.

4. Q.2) What
does
strike off
of a
company
mean?
• Strike Off means removing the name of the Company from the
Register of Companies maintained by the Registrar of
Companies.
• It is more like a Closure of the Company and the Company will
not be in existence after being Struck Off and cannot perform
any operation thereafter.

5. Q.3) What is
the
procedure for
Closing a
Private
Limited
Company?
• Shutting down a company is a long and complicated procedure.
• A Private Limited Company can be closed down in various
manners depending on the requirement of the owner.
• The owner can sell the company. Can close down the company
by declaring the company ‘Defunct'(Striking of the company).
• Winding up or dissolving the company.

6. Q.4) How long does it take to Strike off of a company?
It usually takes at least 3 months for
a company to be officially dissolved,
but the length of time can vary
considerably if the process is complex.
Generally, however, a company will
cease to exist no less than 3 months of
the winding-up notice being
advertised in the Gazette.

7. Q.5) What happens after the registrar strikes off the
name of the Company?
There are serious consequences for Directors of companies which are
involuntarily struck off, particularly if the company is still trading.
The company ceases to exist as a legal entity from the date of dissolution The
assets of the company become vested in the state Where the company ceases to
exist, banks will be unwilling to provide finance and future contracts with
customers/ suppliers may be jeopardised Directors of companies that are
involuntary struck off may be disqualified from acting as a Director
The company’s Shareholders and Officers are trading without the protection of limited
liability and can be held personally liable for the debts of the company.

8. Q.6) Can a struck off company still
trade?
When a company is struck off, the name
would be removed from the company
register and it can not trade, sell its assets or
make payments or even it can not get
involved in any other business activities.
The name of the company would
be made available for new
companies to use.

9. The company can be struck off under following
circumstances:
• When a company has failed to commence its
business within one year of its incorporation.
• When a company is not actively carrying on any
business or operation for a period of two
immediately preceding financial years and has
not made any application within such period for
obtaining the status of a dormant Company.
Q.7) In what
conditions the
Company’s name
can not be struck
off?

10. Website : https://contetra.com/strike-that/
Email Id : tejas.savla@contetra.com
Phone No : 98338 18857