Striking off a company

Once a company has been incorporated as per the Indian Companies Act 2013, it also gets a certificate issued by the government of India that states all the details like the dates and other important points. Once a company has been registered, its name cannot be removed unless there is an instance where it gets dissolved by law. However, this has another condition according to which it is compulsory for that particular company to start business within a span of one year. A failure to do so can lead to the company being considered as defunct. Once that happens, its name can be automatically struck out from the Register of Companies. Another situation that can lead to the striking out of a company arises when a registered company fails to fill its balance sheet for many years. The power of the ROC to strike off a company's name includes the scenarios where the company is either wound up or no liquidator is working in it or if any pending returns are not being submitted. However, the striking off of a company does not have a drastic effect on the creditors because they
have the ability to claim for any dues.