1. What is the distinction between Strike Off and Dormant Company?<\/strong><\/p>\n\n\n\nIn strike off, the firm is permanently deleted from ROC register while in dormant company, firm is inactive but still legally registered.<\/p>\n\n\n\n
2.Can the business of a struck-off company be resumed?<\/strong><\/p>\n\n\n\nGenerally, a struck-off company cannot continue business unless it is restored through the legal process, where applicable. Otherwise, a new company must be incorporated.<\/p>\n\n\n\n
3.Is there any way to get back into business as a dormant company?<\/strong><\/p>\n\n\n\nYes, A dormant company may request to go back into operation provided it meets the necessary legal formalities<\/p>\n\n\n\n
4. Which choice is cheaper?<\/strong><\/p>\n\n\n\nIn Strike Off, the company will have only one expense of closing down the business, but Dormant Companies have annual expenses.<\/p>\n\n\n\n
5. Does a dormant company file its annual returns?<\/strong><\/p>\n\n\n\nDormant companies have reduced compliance obligations but are still required to meet certain annual filing requirements prescribed by law.<\/p>\n\n\n\n
6. Can a company with liabilities apply for Strike Off?<\/strong><\/p>\n\n\n\nGenerally, a company should settle its liabilities before applying for voluntary strike off, subject to applicable legal requirements.<\/p>\n\n\n\n
7. Is shareholder approval required for Strike Off?<\/strong><\/p>\n\n\n\nYes. Approval of shareholders is generally required before making a voluntary strike-off application.<\/p>\n\n\n\n
8. Can a dormant company own property?<\/strong><\/p>\n\n\n\nYes. A dormant company may continue to hold assets, subject to compliance with applicable laws.<\/p>\n\n\n\n
9. Is audit mandatory for a dormant company?<\/strong><\/p>\n\n\n\nThe compliance framework for dormant companies differs from active companies. Advice from experts needs to be sought according to the particular situation and relevant laws in place.<\/p>\n\n\n\n
10. What is best for start-ups?<\/strong><\/p>\n\n\n\nIf founders plan to restart the business in the future, dormant status is usually the better option. If there is no intention to continue, strike off is generally more suitable.<\/p>\n\n\n\n
\nALSO READ<\/p>\n<\/blockquote>\n\n\n\n
Closure of Private Limited Company via Strike Off<\/strong><\/a><\/p>\n\n\n\nWhat is the Difference Between Winding Up and Strike Off<\/strong><\/a><\/p>\n\n\n\nCan a Section 8 Company Be Struck Off<\/strong><\/a><\/p>\n\n\n\nRevival of Struck off Company under the Companies Act, 2013<\/strong><\/a><\/p>\n\n\n\nLLP Closure Guide<\/strong><\/a><\/p>\n\n\n\nHow to Check Company Name Availability on MCA Portal<\/strong><\/a><\/p>\n\n\n\n