Amendment in Company Strike Off Procedure

Ministry of corporate Affairs (MCA) on 8th May, 2019 has issued new set of rules and regulation regarding removal of names of companies from the register of companies. The change in the rules comes to effect post 2019 amendment. The effect of the said change is applicable for 10 may,2019.

As per the companies (Removal of names of companies from the registrar of companies) Amendment Rules,2019. The following changes will come into effect:

1. Increase in the Application Cost

The cost for closure of companies has been increased from Rs. 5000 to Rs. 10000 this means that form STK-2 will cost Rs 10000 from 10 May 2018. The form STK-2 is necessary for submitting a request with the ROC for removal of name of the company.

2. Complete the Compliances

The company filing for strike off will have to complete its all the overdue returns in the form AOC -4 i.e. financial statement of the company, AOC-4 XBRL and MGT-7 (Annual Return) up to the financial year in which the company will cease to exist.

The change in the company name removal from the register has come after the amendment from MCA by inserting proviso to Rule 4 in the 2019 amendment has made it clears that the companies involved will have to complete all the financials before filing the STK-2 form.

Relevant Forms for Company Strike Off

STK-2

When the company files for voluntary removal of the company from the MCA register the form STK-2 is to be filed with the registrar of the companies.

AOC-4

Financial statement of the company is filed through Form AOC-4 every financial year with the registrar of companies.

MGT-7

MGT-7 is an electronic form that is used by the corporates to file their annual return details with the MCA. The form is maintained and checked by the ministry of corporate affairs digitally to check the accuracy of the statement filed by the companies.

MGT-7 is to be filed every year by the company for completion of its annual return or the company is issued a hefty penalty.

STK-8

MCA has rolled out new attachment to be filed with STK-2 ie removal of the company name from ROC register; STK-8 that is statement of account that will be filed along with the application of strike off. The form will contain all the relevant information pertaining to the company assets and liabilities of the company up to 30 days before the submission of application.

Annual Return Filing in Case of Involuntary Strike-Off

In case the company is being involuntarily being struck off from the ROC then under such circumstances the director is disqualified for a period of 5 years and the company is under no obligation to file annual compliances.

The ROC is under an obligation to send a notice the company directors about his intention to remove the name of the company from the register of the companies. The directors of the company have to send their representation and the copies of the required documents within 30 days of the notice from the ROC.