What is STK-2?
The Ministry of Corporate Affairs (MCA) has announced Form STK-2 for removing name from Registrar of Companies, i.e. winding up of a company. Form STK-2 will be made available by the MCA from the 5th April, 2017 for filing on the MCA portal.
Striking off the name of a company is an alternative mechanism for closing the operations of the company. The Registrar of Companies (ROC) can issue a notice to strike off the company name from Registrar of Companies for certain reasons. The company can also apply for the ROC to strike off its name from the Registrar of Companies.
What are ways to strike off a company?
A Company can get strike off in two ways:
- By company itself as voluntary strike off.
- By Registrar of Companies.
When has to strike off?
- According to section 248 if the company fails or does not commence business within one year of incorporation.
- The company is inoperative or does not carry out any business for two preceding financial years and has not filed an application within such period for getting the status of a dormant company under Section 455 of the Act.
- Form STK-2- An application by company on suo-moto to Registrar of Companies for removing the name of the company from registrar of companies.
On receiving the application by the company for strike off the company name, the ROC shall issue a public notice in the manner prescribed under the Act.
A company can get apply for striking off voluntary after satisfying the below given conditions:
- Extinguishing all its liabilities and
- Taking approval from members by special resolution
Who has to strike off?
As per section 248 to 252, the Registrar of Companies (ROC) will send a notice to the company and its directors of the intention to remove the company name/strike-off company name from the Registrar of Companies if there is a reasonable cause to believe that:
- The company fails or does not commence business within one year of incorporation.
- The company is inoperative or does not carry any business for two preceding financial years and has not filed any application within such period for getting the status of a dormant company under Section 455 of the Act.
The ROC will request the company to send its representations with copies of the relevant documents within thirty days from issuing the notice of striking off the company name.
Requirements to file STK-2
All types of companies like private limited company, public limited company, one person company can apply for closure using Form STK-2. The following are the enclosures that must be attached with Form STK-2:
- Indemnity Bond duly notarized by all directors (in form STK-3).
- A statement of liabilities comprising of all assets and liabilities of the companies (certified by a Chartered Accountant).
- Certified true copy of Special resolution (duly signed by every director of the company).
- Copy of Board resolution authorizing the filing of this application.
- Indemnity bonds in form no. STK-3.
- An affidavit in form STK-4.
- A statement concerning any pending litigations with respect to the company.
- Copy of relevant order of delisting, if any, from the concerned stock exchange.
- No objection certificate from relevant regulatory department in case company is governed by such department.
The concerned Registrar of Companies (ROC) after verifying the documents will strike off the name of a company. The business would cease to operate as a company and the Certificate of Incorporation issued to it shall be deemed to have been cancelled from such date, If you have any doubt regarding this, you can contact company suggestion.