What is the meaning of strike off company?
A company strike off is the process when a business is removed from the Companies House register and it ceases to exist.
What is a strike off in accounting?
At the point of strike off, your company must have no outstanding liabilities. In other words, you can not dissolve your business if it is insolvent and it can’t pay its debts.
Is striking off the same as liquidation?
Voluntary strike-off, also known as dissolution, places the responsibility for closing down the company firmly with yourself and other directors. Voluntary liquidation, on the other hand, is an official process undertaken by a licensed insolvency practitioner (IP).
What happens when a Ltd company is struck off?
Once a company strike off form has been filed, the company can no longer trade, sell company assets or become involved in any other business activities. For all intents and purposes, your business is closed.
Can a company be struck off with debts?
Yes, you can close your company. The process is called dissolving a limited company or dissolution. A voluntary dissolution can remove companies from the Companies House Register if you meet certain conditions. Most specifically, you cannot dissolve a company if it has significant debts.
What is the difference between striking off and winding up?
Striking off is the preferred option for defunct companies or companies with nil or very limited liabilities. There are companies which need to wind up its affairs simply because they no longer need to exist. Winding up is also required when companies have assets and liabilities.
What happens after strike off?
When a company is struck off, the name would be removed from the company register and it can not trade, sell its assets or make payments or even it can not get involved in any other business activities. The name of the company would be made available for new companies to use.
How long can a company strike off?
It takes at least three months for a limited company to be struck off the Companies House register. Once the completed DS01 form has been submitted and assuming all the details are correct, Companies House will send acknowledgement in the post.
Can a strike off company sell its property?
(i.e. all movable and immovable assets/properties) of such struck off companies (which ceased to operate as legal entities) cannot be used, operated, transferred or alienated in any manner by the companies including by their ex-directors/authorised signatories, till they are restored by following the due process of law …
How do you revive a company after a strike off?
Reviving a struck-off company A company that is struck off from the ROC may be revived by filing an application to the National Company Law Tribunal (NCLT) in FORM STK 7 wherein the order of striking off may be challenged.