Striking Off Company: The Legal Way to Dissolve a Company

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When a company has reached the end of its useful life, or its owners have decided to close it down, striking off is an efficient and cost-effective way to dissolve the company and remove it from the Companies House register. Striking off can be completed without the need for formal liquidation, which can save time and effort.

Reasons for Striking Off Company

There are several reasons why a business owner might choose to strike off a company. For example:

  • The company is no longer trading
  • The company has no significant assets
  • The company has fulfilled its purpose
  • The owner wishes to simplify their business structure

Eligibility for Striking Off Company

Before a company can be struck off, it must meet certain eligibility criteria, including:

  • The company must not be trading or have any significant assets
  • There can be no legal proceedings against the company
  • There can be no outstanding creditors

The Process of Striking Off Company

The process of striking off involves several steps:

  1. Sending the application to Companies House: The company must send an application to Companies House requesting that the company be struck off the register. The application must include a statement of solvency signed by all the company's directors.
  2. Publication of notice: After receiving the application, Companies House will publish a notice in the Gazette, a public record that provides notice to any interested parties.
  3. Objections and striking off: If there are no objections from interested parties, the company will be struck off the register. If there are objections, the striking-off process will be delayed until the issues are resolved.

Advantages of Striking Off Company

Striking off has several advantages, including:

  • Cost-effective: Striking off is a cost-effective way to dissolve a company without the need for formal liquidation.
  • Saves time and effort: Striking off can be completed more quickly than a formal liquidation.
  • Simplifies the business structure: Striking off can be an efficient way to simplify a business structure.

Disadvantages of Striking Off Company

While striking off has several advantages, it is not appropriate for all situations. For example:

  • Cannot be used if the company has outstanding creditors: If the company owes money to creditors, striking off is not an option


Alternatives to Striking Off  Company

If striking off is not an appropriate option for a company, there are several alternatives, including:

  • Formal liquidation: If the company has outstanding creditors, formal liquidation may be necessary to distribute the company's assets to the creditors.
  • Administration: If the company is insolvent but has the potential to be saved, the administration may be an option to restructure the company and pay off its debts.
  • Company voluntary arrangements: A company voluntary arrangement (CVA) is a legally binding agreement between a company and its creditors that allows the company to pay off its debts over a period of time.

Conclusion

Striking off a company can be a simple and cost-effective way to dissolve a company and remove it from the Companies House register. However, it is important to ensure that the company meets the eligibility criteria and that striking off is the appropriate option for the company. If striking off is not an option, there are several alternatives that may be appropriate depending on the company's circumstances.

Frequently Asked Questions of  Striking off Company

How long does the striking-off process take?
The process typically takes around two to three months from the time the application is submitted.
Can I strike off a company if it has outstanding creditors?
No, striking off is not an option if the company has outstanding creditors.
Do I need a solicitor to strike off a company?
No, it is not necessary to use a solicitor to strike off a company. The process can be completed by the company's directors.
Can I strike off a company if it is insolvent?
No, striking off is not an option if the company is unable to pay its debts as they fall due.
Can I object to the striking off of a company?
Yes, interested parties can object to the striking off of a company. If there are objections, the striking-off process will be delayed until the issues are resolved.


Microvista is a technology company that offers a comprehensive database of struck-off companies in India. Their platform provides access to a regularly updated list of companies that have been struck off, dissolved, or are in the process of being struck off by the Registrar of Companies.

Microvista's database allows businesses to identify potential acquisition targets, competitors, or suppliers that have been dissolved or struck off. This can be particularly useful for businesses looking to expand their operations or enter new markets. By identifying these companies, businesses can potentially acquire their assets or customers, or even gain valuable insights into their operations.

In addition, Microvista's platform can also help businesses protect themselves from potential fraud or scams. By checking the database, businesses can ensure that they are not dealing with a company that has been struck off or dissolved by the Registrar of Companies. This can help businesses avoid potential financial losses or legal issues.

Overall, Microvista's platform can be a valuable tool for businesses looking to identify struck off companies in India. By providing access to a comprehensive and regularly updated database, businesses can make informed decisions and protect themselves from potential risks. For more information, visit their website at https://www.microvistatech.com/struck-off-companies.aspx.

Location: India

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