Difference between Closing of Company and Striking off name of the

company as per Companies Act 2013

Closing of Company
 Closing a company typically refers to winding up or liquidation of the company,
which is a legal procedure where a company's assets are sold off to pay its debts and
any remaining funds are distributed to shareholders.
Implications:
 The company ceases to exist after completion of the winding-up process.
 Debts are settled, and any surplus is distributed among the members.
 The company is dissolved and removed from the register of companies.

Striking Off the Name of the Company

 Striking off the name of the company is an alternative to winding up, where the
Registrar of Companies (RoC) removes the company's name from the register of
companies, resulting in the dissolution of the company.
Implications:
 The company is dissolved after the name is struck off from the register.
 The company's existence as a legal entity comes to an end.
 However, if any person feels aggrieved by this action, they can appeal to the National
Company Law Tribunal (NCLT) within a prescribed time frame for restoring the
name of the company in the register.

Key Differences:
S. No Difference Closing of Company Striking Off
1. Initiation Closing of Company can be Striking Off can be initiated by
voluntary or by court the company or the Registrar
order. of Companies.
2. Purpose Closing of Company aims Striking Off is a simpler way
at settling debts and to dissolve a company that is
distributing any surplus, inactive and does not have
ultimately dissolving the significant liabilities.
company.
3. Procedure Closing of Company Striking Off is a more
Complexity involves a detailed process straightforward process,
 of liquidation. especially when done
voluntarily by the company.
4. Regulation Closing of Company is Striking Off is specifically
governed by a broader covered under Sections 248-
range of sections (270- 252.
365).

In summary, while both processes ultimately lead to the dissolution of a company, they
cater to different scenarios and follow different procedures under the Companies Act, 2013.
The choice between them depends on the specific circumstances and status of the company.