What Does It Mean For a Company To Be Struck Off By The MCA?
When a company is struck off by the MCA, it means that the company is no longer recognized as a legal entity. The MCA takes this action when a company fails to comply with statutory requirements or engages in activities that are harmful to its shareholders or the public interest. This process effectively removes the company from the official records, making it legally non-existent.
Reasons For a Company To Be Struck Off
Companies are typically struck off by the MCA for various reasons, including:
Failure to file annual returns and financial statements as required by law.
Non-compliance with statutory requirements, such as not holding annual general m...
What Does It Mean For a Company To Be Struck Off By The MCA?
When a company is struck off by the MCA, it means that the company is no longer recognized as a legal entity. The MCA takes this action when a company fails to comply with statutory requirements or engages in activities that are harmful to its shareholders or the public interest. This process effectively removes the company from the official records, making it legally non-existent.
Reasons For a Company To Be Struck Off
Companies are typically struck off by the MCA for various reasons, including:
Failure to file annual returns and financial statements as required by law.
Non-compliance with statutory requirements, such as not holding annual general meetings.
Non-payment of statutory dues, such as income tax or Goods and Services Tax (GST).
Involvement in fraudulent activities or misuse of the corporate structure for illegal purposes.
Consequences of Being a Struck-Off Company
The company loses its legal status and is no longer recognized as a separate legal entity.
The company cannot enter into contracts, own assets, or carry on any business activities.
The company's bank accounts are frozen, and any funds held in those accounts are transferred to the government.
The company's directors may be held personally liable for the company's debts and liabilities.
Damage the company's image and make it difficult to attract new clients or investors.
Lead to legal consequences, as struck-off companies can face penalties and legal actions for their non-compliance or fraudulent activities.
How To Check If a Company Has Been Struck-Off By The MCA
Business owners, investors, and stakeholders need to be verify the status of a struck-off company online.
Visit mca.gov.in
Click MCA Services
Enter the Company Name or Registration Number
View the Company Status
Else use InstaFianancials for more ease & convenience. This platform offers comprehensive insights into struck-off companies online. By utilizing this user-friendly tool, you can effortlessly search for company names, instantly access company registration details, Strike off companies list, and explore potential related parties and director disqualification status. This can be valuable for conducting due diligence and making informed decisions when engaging with a company.
