Strike Off Company / Closed company

Strike off company, Closed company

Closing down a company involves a certain number of formal steps and the overall process can take many months to complete.

1. The most common reasons for closing a company are:

  • Failure of the company to carry on business
  • Company is so longer profitable
  • Failing out between shareholders
  • Non-compliance with statutory requirements, including mismanagement of company affairs.
  • Corporate restructuring of the group to which the company belongs.
  • Companies can be closed down either by "Deregistration" or "Winding Up". Although both the procedure will result in the dissolution of a company, the processes they entail are significantly different.

2. The company must meet the following conditions before making an application for deregistration

  • All the members of the company agree to the deregistration;
  • The company has not commenced operation or business, or has not been in operation or carried on business;
  • The company has no outstanding liabilities;
  • The company is not a party to any legal proceedings.

3. In applying to have the company deregistered

It is of important that all the liabilities of the company be settled and all assets disposed/processed. In particular, any balance in the bank account of the company should be transferred out.