Striking off a Company/LLP: Simplified
26 December 2017 • Anupama
|Relevant Section/ Rules
|Strike off a Company
|Sec. 248 of CA 2013
- A company can be struck off, if it has failed to commence business within one year of its incorporation or has not been doing business or operations for last two financial years.
- For striking off a company, an e -form named STK-2 is required to be filed along with its necessary attachments.
|Filing Fees: – 5,000/-
|Documents required: –
- Copy of Board resolution authorizing the filing of this application;
- A statement of accounts showing the assets and liabilities of the Company made up to a day, not more than thirty days before the date of application and certified by a Chartered Accountant. One of the eligibility criteria for strike off is that the company should not have any assets or liabilities, i.e.. Nil assets and nil liabilities.
- Shareholder’s approval , either by special resolution or consent of 3/4th
- In the case of a company regulated by any other authority, approval of such authority shall also be required.
- Indemnity bond [to be given individually or collectively by the director(s)]
|Strike off a LLP
|Rule 37 of LLP Rules, 2009
- A LLP can be struck off if it is not carrying on the business or operation for a period of 1 (one) year
- For striking off a LLP, an e-form 24 is required to be filed along with its necessary attachments.
|Filing fees: – 500/-
|Documents required: –
- Copy of Authority letter to make the application, signed by all the partners
- Statement of Accounts Certified by CA disclosing nil assets and nil liabilities; It should not be older than thirty days before the date of application
- Copy of acknowledgement of latest ITR (Income Tax Return) filed
- Copy of initial LLP Agreement, if entered into and not filed
|Some other Pointers:
- Non-Requirement of filing Form 3 LLP before filing for strike off: LLP is not required to File form 3 LLP if it has not commenced business or commercial operations since Incorporation.
- Non-Requirement of filing Form 8 & Form 11 (Annual Filings) before filing for strike off: LLP is not required to file Form 8 & Form 11 if it has not commenced business or commercial operations since Incorporation.
- By LLP Amendment Rules, “The LLP shall, file overdue returns in Form 8 and 11 up to the end of the financial year in which the LLP ceased to carry on its business or commercial operations before filing of form for strike off”.
- Note:- The date of cessation of commercial operation is the date from which the LLP ceased to carry on its revenue generating business and the transactions such as receipt of money from debtors or payment of money to creditors, subsequent to such cessation will not form part of revenue generating business.
P.S.: – For more details you may please visit our blogs: –
1.Strike Off Under Companies Act, 2013
2. How to close an LLP in India/Easy Exit/Strike Off