Required documents for removal of company name by Form STK2

Required documents for removal of company name by Form STK2

What is Form STK-2?

Form STK-2 has been introduced by the Ministry of Corporate Affairs or MCA. It intends to eradicate name from the register of companies. It was made available to the users from April 5th onwards. The MCA introduced Sections ranging from 248 to 252 of the Companies Act, 2013. As per this company, names can be successfully removed from the Register of Companies. The Registrar of Companies is entitled with the below-mentioned powers required, to remove name of company from the register of companies Whenever any of the above-mentioned cases occur, the Registrar may confiscate the name of the company from the register of companies. For this, a notice is forwarded to the directors of the company along with the company. Furthermore, the notice would disclose the aim to remove the title of the company from the register of companies and demand the company to send statements as well as a photocopy of the applicable documents in the duration of thirty days from the issued notice.

1. Under any circumstances, if in the duration of one year, a company fails to start after its incorporation, then it is eligible for removal.
2. Under any circumstances, if for two continuous financial years, the company is not carrying on any business or operation and also and has not applied for a status of a dormant company, then it is eligible for removal.

How can one willingly remove company name using STK-2 Form?

The process involved for removing a company name from the record of companies can be successfully done by the company after filing Form STK-2, however, to do that the company should have excused the liabilities. In addition, a unique solution is presented so that the ejection of company name from the register of companies is done with 75% of its member approval in terms of paid-up share investment. Furthermore, when the company is coordinated by a specific Act, thereafter, the consent of the regulatory body composed underneath that Act, requires being attained and enclosed with the application.

How can one shut a company by filing STK-2 form?

The Registrar possesses the authority and obligation to reassure him or her, that under the appropriate situation, measures have been taken to ensure that the amount outstanding to the company and the payment or release of its liabilities by the company has been taken care of. Furthermore, the ROC is entitled to get hold of necessary accomplishments from the managing director or else the individual in charge of the management of the establishment. When all the necessary formalities have been completed, the ROC would issue a public notice directed to whoever concerned demanding the shutting down of the company. In case, the date of expiry stated in the notice, the Registrar has the authority to strike off the company’s name from the register of companies. Moreover, a notice is published mentioning the striking-off of the name of the company to the Official Gazette. Once it is published in the Official Gazette, the company is being suspended.

Documents needed to file STK-2 form

Companies such as one person company, Limited company, Private limited company are eligible to apply for its termination closure by Form STK-2. The below-mentioned documents that must be provided along with Form STK-2: The Managing Director or Director of the company is needed to state the following things in the Form STK-2: However, in case the company is involved in any of the below-mentioned cases, then form STK-2 cannot be filed:In conclusion, knowledge about the “required documents for removal of the company name by Form STK2” is essential if any company is required to be dissolved under section 248 of the Companies Act, 2013.

1. Firstly a duly notarized Indemnity bond from each director in Form STK 3.
2. Secondly, account statements comprising of assets and accountability of the company is required provided it does not exceed thirty days from the application date. In addition, it has to be certified by a Chartered Accountant.
3. Next, an affidavit by every single company directors in Form STK-4 is needed.
4. A unique solution is presented which is authorized by each of the directors of the company or with 75% of its member approval in terms of paid-up share investment.
5. A statement is required mentioning the awaiting litigation in which the company is involved.
6. Firstly, there is no assessment or inquiry against the company. However, in case of any inspection , there lies no prosecution that is awaiting in any court.
7. Secondly, the company does not have any public credit which is outstanding. The company did not skip repayment or interest.
8. Thirdly, assurance should be provided that the company is not responsible for any outstanding loans whether tenable or untenable.
9. In addition, it must be assured no payments are pending towards VAT, excise duty, income tax, service tax or any other imposed duties, and are paid by the company to the Central or any State Government, or any authority- statutory or local.
10. Furthermore, any liabilities of the company should be settled.
11. As per the instructions laid in the Companies Act and rules, the removal of the company name from the register of companies and other relevant issues must be obeyed as per the Act.
12. Under any circumstances, prior to three months of the filing of Form, if the company altered the existing name or changed the office that is registered from one State to another.
13. Under any circumstances, prior to three months of the filing of Form, if the company disposed of property or privileges held by it. However, this clause is not applicable for trade, where removal of property for gain is in the standard course of trading or conducting business.
14. Under any circumstances, prior to three months of the filing of Form, if the company is connected to other activities except the one which is made available in the MOA or expedient.
15. Under any circumstances, if the company has made a request to the Tribunal for the approval of a concession or understanding and the matter has not been resolved.
16. Under any circumstances, if the company is charged as per Companies Act or as per Insolvency and Bankruptcy Code, 2016.