Define: Strike Off

The process of striking off a company involves submitting an application to the relevant government authority, providing necessary documents, and paying the required fees. The authority will then review the application and, if approved, strike off the company from the official register.

No, not all companies can be struck off. Certain criteria must be met, such as the company being dormant (inactive) for a specific period, having no outstanding liabilities, and obtaining the approval of all shareholders.

Striking off a company can provide various benefits, such as avoiding ongoing compliance requirements, reducing administrative burdens, and saving costs associated with maintaining an inactive company.

Yes, a struck-off company can be restored under certain circumstances. This typically involves applying for restoration within a specified time frame, paying any outstanding fees or penalties, and providing a valid reason for restoration.

Once a company is struck off, its assets generally become the property of the government. However, it is important to note that any outstanding debts or liabilities of the company must be settled before the assets can be distributed.

Yes, even if a company has been struck off, it can still be sued for any legal claims or liabilities that arose before the striking off. The liability of the company’s directors or shareholders may also be affected depending on the circumstances.

The duration of the striking off process can vary depending on the jurisdiction and specific circumstances. It can take several months to complete, as it involves various administrative procedures and reviews.

It is generally not advisable for a company with outstanding debts to voluntarily strike off. Creditors may have the right to object to the striking off and may pursue legal action to recover their debts.

In most cases, a company is not allowed to continue trading once the striking off process has commenced. It is important to cease all business activities and inform relevant stakeholders, such as employees, clients, and suppliers.

Yes, there can be tax implications when striking off a company, such as capital gains tax or tax on distributions. It is recommended to consult with a tax professional to understand the specific implications and obligations in your jurisdiction.