Removal of Company Name from Register 🪦

Two ways to remove a company from ROC register:

1. After Full Winding Up (Normal dissolution).
2. Striking Off (Fast-track removal - Section 248).

1. Normal Dissolution (After Winding Up) 📜

Process:

• Winding up completed (voluntary or compulsory).
• Liquidator files final accounts with ROC.
• Tribunal/ROC issues dissolution order.
• Company name removed from register.
• Company ceases to exist (Legal death).

Timeline: Can take 1-3 years (depending on complexity).

2. Striking Off (Section 248) ⚡

Fast-Track Removal - Without full winding up.

When Can ROC Strike Off? (Section 248)

Suo Moto (ROC's own initiative) - If company:

1. Failed to commence business within 1 year of incorporation.
2. Not carrying on business (dormant for 2 years).
3. Defaulted in filing returns/balance sheet consecutively for 2 years.

By Application (Section 248A) - Company itself can apply if:

1. No business operations for past 2 years.
2. No assets/liabilities (or negligible).
3. Not seeking to avoid liabilities.

Process:

Step 1: Notice sent to company (Give explanation within 30 days).

Step 2: If no satisfactory reply, strike off notice published.

Step 3: After 30 days, if no objection, company name removed.

Timeline: Can be done in 3-6 months (Much faster than winding up!).

Striking Off vs Winding Up 🆚

Key Difference: Striking off = Administrative cleanup. Winding up = Proper liquidation.

Effects of Removal/Dissolution 💀

Once company name is removed:

1. Legal Personality ENDS (Company "dies").
2. Assets vest in Government (escheat to Crown/State).
3. Cannot sue or be sued (No legal existence).
4. Directors/Shareholders relieved (No more obligations)*
   • Exception: If fraud/criminal acts, personal liability continues.

Quiz Time! 🎯

💡 Final Wisdom: "Striking off = Quick cremation. Winding up = Full funeral with rituals. Both end with same result: company gone!" ⚰️

Next up: Insolvency & Bankruptcy Code (IBC) 2016 - The new game changer! 🆕