Strike Off

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If your company is registered but has never started trading and is now 'Active Non-Compliant', you'll need to follow a specific procedure to strike it off the register. While the general process involves filing Form STK-2, there's a crucial point of contention regarding whether overdue annual filings are mandatory even if no business was conducted. Although the law suggests otherwise for non-operational companies, the Registrar of Companies (ROC) may still object, potentially requiring these filings before approving the strike-off.

prakash kumar

prakash kumar (Querist)
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08 June 2020 I have incorporated a company in the year 2016 , but business never could get started neither any other activity related to compliances or anything has been done.
I want to strike off the name of company from "Register of Companies" The status of company is "Active non compliant" what will be the procedure?

c.bakshi

c.bakshi (Expert)
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09 June 2020 FIRST YOU HAVE TO CONVERT THE STATUS TO COMPLIANT COMPANY , DO ALL THE PENDING FILINGS AND THEN FILE STRIKE OFF APPLICATION

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CS VENKATARAMANAN S

CS VENKATARAMANAN S (Expert)
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11 June 2020 Just file Form INC-22A for making the company into active-compliant. Then Bank Account if any opened should be closed and file Form FTE with its annexures. No need to file annual filing if no business or transactions done in that years.

c.bakshi

c.bakshi (Expert)
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11 June 2020 SIR,
FORM FTE is now not is existence. its replaced with STK -2 FORM. Moreover, MCA amended this provision in which annual filing till the date is mandatory.

CS VENKATARAMANAN S

CS VENKATARAMANAN S (Expert)
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11 June 2020 Provisions of Suo-moto Strike off of Company has stated under Section 248 read with Rule 4.

As per Rule 4, Extract of Law:- “An application for removal of name of the company under sub-section (2) of section 248 shall be made in Form STK-2 along with the fee of ten thousand rupees. Provided that no application in Form No. STK-2 shall be filed by a company unless it has filed overdue returns in Form No. AOC-4 (Financial Statement) or AOC-4 XBRL, as the case may be, and Form No. MGT-7 (Annual Return), up to the end of the financial year in which the company ceased to carry its business operations”

Note:- One can opine that as per rule 4 first proviso, a company can’t file application in e-form STK-2 for suo-moto strike off of Company, until unless company has completed filing of annual Form AOC-4 and MGT-7 till the financial year company carry its business operations.

In other word, there is no need to file pending annual form for strike off of Company, if company has not carried any business operation in those years.

CS VENKATARAMANAN S

CS VENKATARAMANAN S (Expert)
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11 June 2020 Thanks Mr. Bakshi for correcting me the Updated form number. But if the Company didn't do any business, it need not file nil returns as per my understanding after read the rule. Other member views solicited.

prakash kumar

prakash kumar (Querist)
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12 June 2020 VENKATARAMANAN S sir, I think u are right, becoz company has never been done business,.So if there is no business since incorporation, then question of annual filling has no means.

Thanks a lot VENKATARAMANAN S sir Bakshi Mam.

c.bakshi

c.bakshi (Expert)
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13 June 2020 I AGREE YOU WITH SIR, BUT THIS IS A PRACTICAL DIFFICULTY WHICH ME AND SOME OF MY FRIENDS FACED, AFTER THIS LATEST NOTIFICATION, MANY A TIMES, ROC OBJECTS IN STK-2, THAT ANNUAL FILING TILL LAST FINANCIAL YEAR IS NOT FILED. KINDLY FILED TO GO FOR FURTHER PROCEEDINGS. THE LOGIC BEHIND IS CORRECT BUT WHEN ROC OBJECTS ON THE SAME, THEN YOU HAVE TO FILE.

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