STRIKE OFF A COMPANY
A Company is formed for achieving certain objectives and when those purposes are not met it may be closed down. Like there is procedure to be followed for incorporation of a Company there is also a procedure to be followed for Closing down a Company.
There are two ways to Close down a Company;
- Strike Off by Removing its Name from register of members
- Winding Up
The most common and cost-effective method for closing down a Company is opting for a Striking Off the Name of Company from Register maintained by Registrar of Companies.
Which Company can opt for Strike Off:
- A company which has failed to commence its business within one year of its incorporation.
- A company which is not carrying on any business or operation for a period of two immediately preceding financial years.
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