Strike off companies/ LLP6 (Limited Liability Partnerships) refers to the process of removing a defunct or inactive company or LLP from the register of companies maintained by the regulatory authority of the respective jurisdiction. This process is typically undertaken when a company or LLP is no longer carrying on business operations, has ceased to exist, or has failed to comply with regulatory requirements. Here’s an overview of the strike-off process for companies and LLPs:
For Companies:
1. Identification of Eligible Companies: Regulatory authorities typically identify companies that are eligible for strike off based on factors such as non-filing of financial statements, annual returns, or any other regulatory filings for a specified period.
2. Notice to the Company: Once a company is identified for strike off, the regulatory authority issues a notice to the company informing them of the intention to strike off and providing an opportunity to respond within a specified timeframe.
3. Response from the Company: The company has the opportunity to respond to the strike-off notice, either by providing reasons for non-compliance or by voluntarily applying for strike off if it meets the eligibility criteria.
4. Publication of Strike-off Notice: If the company fails to respond or rectify the non-compliance within the specified timeframe, the regulatory authority publishes a notice of strike off in the official gazette or other designated publications.
5. Objections from Stakeholders: During the publication period, stakeholders such as creditors, shareholders, or employees have the opportunity to raise objections to the strike off if they believe it will adversely affect their interests.
6. Final Strike-off: If no valid objections are raised within the stipulated timeframe, the regulatory authority proceeds with the strike off of the company, removing it from the register of companies. The company ceases to exist as a legal entity from the date of strike off.
7. Consequences of Strike-off: Upon strike off, the company’s assets (if any) become the property of the state, and the directors may be held personally liable for any outstanding liabilities. Additionally, the directors are disqualified from being directors of any other company for a specified period.
For LLPs:
The process for strike off of LLPs is generally similar to that of companies, with some variations specific to LLP regulations. Here’s an overview:
1. Identification of Eligible LLPs: LLPs that have ceased to carry on business or have not filed statutory documents for a specified period may be identified for strike off by the regulatory authority.
2. Notice to the LLP: The regulatory authority issues a notice to the LLP informing them of the intention to strike off and providing an opportunity to respond within a specified timeframe.
3. Response from the LLP: The LLP has the opportunity to respond to the strike-off notice, rectify non-compliance, or voluntarily apply for strike off if it meets the eligibility criteria.
4. Publication of Strike-off Notice: If the LLP fails to respond or rectify the non-compliance within the specified timeframe, the regulatory authority publishes a notice of strike off in designated publications.
5. Objections from Stakeholders: Similar to companies, stakeholders have the opportunity to raise objections to the strike off during the publication period.
6. Final Strike-off: If no valid objections are raised within the stipulated timeframe, the regulatory authority proceeds with the strike off of the LLP, removing it from the register. The LLP ceases to exist as a legal entity from the date of strike off.
7. Consequences of Strike-off: Upon strike off, the LLP’s assets (if any) become the property of the state, and the designated partners may be held personally liable for any outstanding liabilities.
It’s important for companies and LLPs to comply with all regulatory requirements and ensure timely filing of statutory documents to avoid being struck off the register. Additionally, directors and partners should take appropriate steps to wind up or dissolve the entity if it is no longer carrying on business to avoid potential legal consequences.
To know more, Go through this link https://hamaricompany.com/strike-off/