Company Strike Off
Services in India
Close your inactive or non-operational company legally with Taxced’s expert Company Strike Off services. Our Chartered Accountants, Company Secretaries, and legal professionals assist with eligibility assessment, documentation, ROC filing, and end-to-end company closure under the Companies Act, 2013, ensuring a smooth and compliant exit process.
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100%
ROC Compliance Before Closure
STK-2
Primary Form for Voluntary Strike Off
₹10,000
Government Fee for Form STK-2*
Company Strike Off
Services in India
Close your inactive or non-operational company legally with Taxced’s expert Company Strike Off services. Our Chartered Accountants, Company Secretaries, and legal professionals assist with eligibility assessment, documentation, ROC filing, and end-to-end company closure under the Companies Act, 2013, ensuring a smooth and compliant exit process.
Get a Callback in 10 Minutes
Fill the form. An expert will reach out shortly.
100%
ROC Compliance Before Closure
STK-2
Primary Form for Voluntary Strike Off
₹10,000
Government Fee for Form STK-2*
Overview of
Company Strike Off
What is Company Strike Off?
Company Strike Off is the legal process of removing a company’s name from the Register of Companies (ROC) maintained by the Ministry of Corporate Affairs (MCA). Once the strike-off application is approved, the company is dissolved and ceases to exist as a legal entity, subject to the provisions of the Companies Act, 2013.
A company may apply for voluntary strike off if it is no longer carrying on business, has no outstanding liabilities, and satisfies the eligibility conditions prescribed under Section 248 of the Companies Act, 2013. The application is generally made by filing Form STK-2 with the Registrar of Companies, along with the required declarations and supporting documents.
Company Strike Off provides a legal and cost-effective way to close an inactive company while avoiding unnecessary future compliance obligations. Before applying, companies should ensure that all pending statutory compliances, financial obligations, and regulatory requirements have been appropriately addressed.
Key Highlights
Provides a legally recognised process to close an inactive company through the Ministry of Corporate Affairs.
Eliminates recurring compliance obligations such as annual ROC filings and related professional costs after successful strike off.
Once the company is legally dissolved, it is no longer required to comply with ongoing statutory filing requirements applicable to active companies.
Helps business owners close their company in accordance with the Companies Act, 2013, instead of leaving it inactive without compliance.
Allows promoters to formally conclude an inactive business and focus resources on new ventures or existing businesses
Why is Company Strike Off Important?
If a company has permanently stopped carrying on business, completing the Company Strike Off process is the most appropriate way to legally close the business. Simply leaving a company inactive without complying with statutory requirements may result in ongoing compliance obligations and unnecessary regulatory issues. A properly executed strike off helps promoters close their company in accordance with the Companies Act, 2013 while avoiding future compliance burdens.
Legally Close an Inactive Company
Company Strike Off provides a lawful mechanism to remove an inactive company's name from the Register of Companies maintained by the Ministry of Corporate Affairs (MCA).
Eliminate Future Compliance Costs
Once the company is successfully struck off, it is generally no longer required to comply with recurring corporate filings and annual statutory compliances applicable to active companies.
Avoid Unnecessary Regulatory Burden
Closing an inactive company helps business owners avoid managing ongoing compliance requirements for a business that is no longer operational.
Reduce Compliance Risks
Completing the strike off process after fulfilling applicable legal requirements helps minimise the risk of future compliance issues arising from an inactive company.
Focus on New Business Opportunities
A formal company closure enables entrepreneurs to conclude an inactive venture and concentrate their time, capital, and resources on new business opportunities.
Professional Insight
Many promoters assume that stopping business operations automatically closes a company. In reality, a company continues to exist as a legal entity until its name is officially removed by the Registrar of Companies (ROC). Before applying for strike off, it is advisable to review pending Annual ROC Filing requirements and complete the applicable corporate compliances to improve the likelihood of a successful application.
Who Can Apply for Company Strike Off?
Not every company is eligible for voluntary strike off. Under Section 248 of the Companies Act, 2013, a company may apply for strike off if it has ceased business operations, has no outstanding liabilities, and satisfies the eligibility conditions prescribed by the Ministry of Corporate Affairs (MCA). Before filing Form STK-2, companies should ensure that all statutory requirements have been fulfilled.
Inactive Companies
Companies that have discontinued their business activities and are no longer carrying on any commercial operations may apply for voluntary strike off, subject to the applicable legal conditions.
Companies with No Outstanding Liabilities
The company should have no pending liabilities, including loans, statutory dues, taxes, or obligations towards creditors, employees, or government authorities at the time of application.
Companies with Shareholders' Approval
A special resolution or the consent of at least 75% of the shareholders (in terms of paid-up share capital) is generally required before filing the strike off application with the ROC.
Companies with Updated Statutory Compliance
Companies should complete the applicable statutory filings and maintain updated corporate records before applying for strike off to avoid delays during the approval process.
Eligible Companies Under Section 248
Only companies that satisfy the conditions prescribed under Section 248 of the Companies Act, 2013 are eligible to apply for voluntary strike off through Form STK-2.
Professional Insight
Many companies assume they can apply for strike off immediately after stopping business operations. However, the Registrar of Companies (ROC) may scrutinise whether the company has cleared its liabilities, obtained the necessary shareholder approvals, and completed applicable statutory compliances. Completing pending Annual ROC Filing and ensuring directors have an active DIR-3 KYC Filing, where applicable, can help facilitate a smoother strike off process.
Types of Company Closure
A company may be closed through different legal mechanisms depending on its financial position, business activities, and regulatory circumstances. While voluntary strike off is suitable for eligible inactive companies, other methods such as liquidation or compulsory removal may apply in specific situations. Choosing the correct closure process is essential to ensure compliance with the Companies Act, 2013.
Voluntary Company Strike Off
Voluntary Strike Off is the most common method of closing an inactive company that has ceased business operations, has no outstanding liabilities, and satisfies the eligibility conditions under Section 248 of the Companies Act, 2013. The application is generally filed using Form STK-2.
Compulsory Strike Off by ROC
The Registrar of Companies (ROC) may remove a company's name from the register if it fails to commence business, remains inactive for a prolonged period, or repeatedly defaults in complying with statutory requirements, as permitted under the Companies Act, 2013.
Voluntary Liquidation
Where a company is solvent but intends to wind up its affairs, voluntary liquidation may be undertaken in accordance with the applicable provisions of the Insolvency and Bankruptcy Code, 2016 (IBC) and other relevant laws.
Winding Up by Tribunal
In certain circumstances, a company may be wound up by an order of the National Company Law Tribunal (NCLT) based on the grounds specified under applicable law.
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Method
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Suitable For
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|---|---|
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Voluntary Strike Off
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Inactive companies with no outstanding liabilities
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Compulsory Strike Off
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Companies removed by the ROC for statutory defaults
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Voluntary Liquidation
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Solvent companies choosing to wind up operations
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Professional Insight
Many business owners use the terms "Company Strike Off", "Company Closure", "Company Dissolution", and "Company Liquidation" interchangeably. However, these are different legal processes with distinct eligibility criteria and consequences. For inactive companies without outstanding liabilities, voluntary strike off is often the simplest and most cost-effective option. Businesses should first review pending Annual ROC Filing obligations and ensure directors have completed DIR-3 KYC Filing, where applicable, before proceeding with a closure application.
Company Strike Off
Guide
Eligibility Criteria for Company Strike Off
A company can apply for voluntary strike off only if it satisfies the eligibility conditions prescribed under Section 248 of the Companies Act, 2013. Before submitting Form STK-2, the company should ensure that it has ceased business operations, cleared its liabilities, and fulfilled the applicable statutory requirements. Meeting these conditions improves the likelihood of a smooth approval from the Registrar of Companies (ROC).
Company Has Ceased
Business Operations
The company should not be carrying on any business or commercial activity and should intend to close its operations permanently.
No Outstanding Liabilities
The company must have settled all outstanding liabilities, including loans, statutory dues, taxes, employee dues, and amounts payable to creditors before applying for strike off.
Shareholders' Approval Obtained
The company should obtain a Special Resolution or the consent of at least 75% of the members in terms of paid-up share capital before filing the strike off application.
Statutory Compliances Completed
The company should complete the applicable statutory filings and ensure that its corporate records are updated before submitting the strike off application.
Not Restricted Under the Companies Act
Indemnity Bond and Affidavit executed by all directors in the prescribed format confirming that the company has no outstanding liabilities and agreeing to the strike off.
Professional Insight
Before filing Form STK-2, business owners should review whether all statutory obligations have been fulfilled. Completing pending Annual ROC Filing, ensuring directors have an active DIR-3 KYC Filing, and clearing outstanding liabilities can significantly improve the chances of a successful company strike off application.
Documents Required for Company Strike Off
To apply for Company Strike Off, companies must submit the prescribed documents to the Registrar of Companies (ROC) along with Form STK-2. The required documents help establish that the company has ceased operations, has no outstanding liabilities, and satisfies the conditions for voluntary strike off under the Companies Act, 2013.
Board Resolution
A certified copy of the Board Resolution approving the proposal to apply for voluntary strike off.
Special Resolution or Shareholders' Consent
A certified copy of the Special Resolution passed by the shareholders or the consent of at least 75% of the members in terms of paid-up share capital.
Statement of Accounts
A statement of accounts certified by a practising Chartered Accountant, generally not older than 30 days from the date of filing the application.
Indemnity Bond & Affidavit
Indemnity Bond and Affidavit executed by all directors in the prescribed format confirming that the company has no outstanding liabilities and agreeing to the strike off.
Form STK-2
The prescribed Form STK-2, duly completed, digitally signed, and submitted through the MCA portal along with the required attachments.
Digital Signature Certificate (DSC)
A valid Digital Signature Certificate (DSC) of an authorised director for electronic filing with the Ministry of Corporate Affairs.
Director Identification Number (DIN)
The DIN details of the directors signing the application should be active and compliant with applicable MCA requirements.
Step-by-Step Company Strike Off Process
Closing a company through Company Strike Off involves reviewing eligibility, preparing statutory documents, obtaining shareholder approvals, and filing the prescribed application with the Registrar of Companies (ROC). At Taxced, our Chartered Accountants, Company Secretaries, and legal professionals manage the complete process to ensure a smooth, compliant, and hassle-free company closure.
Step 1: Eligibility Assessment
Our experts review your company's legal status, business activities, financial position, and statutory compliance history to determine whether it qualifies for voluntary strike off under Section 248 of the Companies Act, 2013.
Step 2: Document Collection & Compliance Review
We collect the required documents, verify corporate records, review pending compliances, and ensure the company has no outstanding liabilities before proceeding with the application.
Step 3: Board & Shareholders' Approval
The company passes the necessary Board Resolution and obtains the required Special Resolution or consent of at least 75% of the shareholders (in terms of paid-up share capital) to approve the strike off.
Step 4: Preparation of Form STK-2
Our professionals prepare Form STK-2, the Statement of Accounts, Indemnity Bond, Affidavit, and all supporting documents required for submission to the Ministry of Corporate Affairs.
Step 5: ROC Filing & Verification
The completed application is digitally signed and filed with the Registrar of Companies (ROC) through the MCA portal. The ROC reviews the application and may seek additional information, if required.
Step 6: Company Strike Off & MCA Notification
Upon successful verification and approval, the ROC publishes the prescribed notice and removes the company's name from the Register of Companies. The company is then legally dissolved in accordance with the Companies Act, 2013.
Government Fees for Company Strike Off
The total cost of Company Strike Off consists of the prescribed Ministry of Corporate Affairs (MCA) filing fee and professional charges for preparing documents, reviewing statutory compliances, and managing the closure process. The exact cost may vary depending on the company’s compliance status and whether any additional filings are required before applying for strike off.
Form STK-2 Government Fee
The MCA currently prescribes a government filing fee of ₹10,000 for submitting Form STK-2 for voluntary company strike off.
Professional Service Charges
Professional fees generally include eligibility assessment, preparation of statutory documents, drafting of resolutions, compliance review, preparation of Form STK-2, and end-to-end ROC filing support.
Additional Compliance Costs
If the company has pending statutory filings or other compliance defaults, additional costs may arise for completing those compliances before the strike off application can be submitted.
Document Preparation
Preparation and certification of documents such as the Statement of Accounts, Affidavits, Indemnity Bonds, and other supporting documents may also form part of the overall compliance cost.
Transparent Pricing
At Taxced, we provide transparent pricing with no hidden charges. Before initiating the strike off process, our experts review your company's compliance status and provide a clear estimate of the applicable professional and government fees.
Expected Timeline for Company Strike Off
The time required to complete a Company Strike Off depends on the company’s compliance status, document readiness, and the processing time of the Registrar of Companies (ROC). While straightforward applications are generally processed faster, incomplete documentation or pending compliances may extend the overall timeline.
Eligibility & Compliance Review
Estimated Time: 1–2 Business Days
Outcome:
Our experts review your company’s eligibility, pending compliances, and statutory records to determine whether it qualifies for voluntary strike off.
Document Preparation
Estimated Time: 2–5 Business Days
Outcome:
Preparation of Board Resolution, shareholders’ approval, Statement of Accounts, Indemnity Bond, Affidavit, and other supporting documents required for Form STK-2.
ROC Filing
Estimated Time: 1 Business Day
Outcome:
After all documents are verified and approved, Form STK-2 is digitally signed and filed with the Ministry of Corporate Affairs (MCA).
ROC Processing & Verification
Estimated Time: 30–90 Days
Outcome:
The Registrar of Companies reviews the application, verifies the submitted documents, and processes the strike off request in accordance with the Companies Act, 2013.
Final Company Strike Off
Estimated Time: After ROC Approval
Outcome:
Upon successful verification, the ROC publishes the prescribed notice and removes the company’s name from the Register of Companies, completing the legal closure process.
Professional Insight
Many business owners expect a company to be dissolved immediately after filing Form STK-2. In practice, the Registrar of Companies (ROC) must review the application, examine the supporting documents, and complete the prescribed statutory process before approving the strike off. Ensuring that pending Annual ROC Filing obligations are addressed and directors have an active DIR-3 KYC Filing, where applicable, can help reduce avoidable delays during the review process.
Company Strike Off
Compliance
Common Reasons for Rejection of Company Strike Off
The Registrar of Companies (ROC) carefully reviews every Company Strike Off application before approving it. Applications may be rejected if the company fails to meet the eligibility requirements or submits incomplete or inaccurate documentation. Reviewing these common issues before filing Form STK-2 can significantly improve the chances of successful approval.
Incomplete or Incorrect Documentation
Missing resolutions, affidavits, indemnity bonds, or inaccuracies in Form STK-2 are among the most common reasons for rejection.
Outstanding Liabilities
Companies with unpaid loans, taxes, statutory dues, employee dues, or outstanding creditor obligations are generally not eligible for voluntary strike off until such liabilities are settled.
Pending Statutory Compliances
Failure to complete applicable statutory compliances or maintain updated corporate records may result in the ROC seeking additional information or rejecting the application.
Company Not Eligible Under Section 248
A company that does not satisfy the eligibility conditions prescribed under Section 248 of the Companies Act, 2013 cannot apply for voluntary strike off.
Ongoing Legal Proceedings or Regulatory Actions
Companies involved in ongoing investigations, legal proceedings, or regulatory actions may not be eligible for strike off until such matters are resolved in accordance with applicable law.
Professional Insight
Many Company Strike Off applications are delayed not because the company is ineligible, but because promoters apply before completing essential statutory compliances. Before filing Form STK-2, businesses should review pending Annual ROC Filing, ensure directors have completed DIR-3 KYC Filing, verify their legal structure established through Private Limited Company Registration or One Person Company (OPC) Registration, and settle all outstanding liabilities, including those arising from GST Registration, where applicable. Proper compliance planning significantly improves the likelihood of a smooth and successful company closure.
Consequences of Improper Company Closure
Simply stopping business operations does not legally close a company. Until the company’s name is officially removed from the Register of Companies (ROC), it continues to exist as a legal entity and may remain subject to statutory obligations under the Companies Act, 2013. Failing to complete the proper closure process can lead to avoidable compliance issues and administrative challenges.
Continuing Statutory Compliance
An inactive company may still be required to comply with applicable statutory obligations until it is legally struck off by the Registrar of Companies.
Additional Compliance Costs
Failure to legally close the company may result in recurring professional fees, filing costs, and expenses associated with maintaining corporate compliance.
Regulatory Action
Persistent non-compliance with statutory requirements may attract regulatory scrutiny or action under the applicable provisions of the Companies Act, 2013.
Impact on Directors
Directors may face practical difficulties in managing future corporate compliances if statutory obligations of the inactive company remain unresolved.
Business & Investment Challenges
An inactive company with unresolved compliance issues may create complications during due diligence, business restructuring, or future entrepreneurial ventures.
Common Mistakes to Avoid During Company Strike Off
Applying for Company Strike Off requires careful planning and compliance with the requirements prescribed under the Companies Act, 2013. Many applications are delayed or rejected because companies overlook essential statutory obligations or submit incomplete documentation. Avoiding these common mistakes can help ensure a smoother and faster company closure process.
Ignoring Pending ROC Filings
Many companies apply for strike off without reviewing pending statutory filings. Completing applicable annual compliances before submitting Form STK-2 helps avoid unnecessary delays.
Applying with Outstanding Liabilities
Companies with unpaid taxes, loans, employee dues, or creditor liabilities are generally not eligible for voluntary strike off until these obligations are fully settled.
Submitting Incomplete Documentation
Missing resolutions, affidavits, indemnity bonds, or an outdated Statement of Accounts are among the most common reasons for delays and resubmissions.
Not Obtaining Shareholders' Approval
Failure to obtain the required Special Resolution or the consent of at least 75% of the shareholders before filing the application may result in rejection by the ROC.
Waiting Until the Last Minute
Delaying the strike off process often leads to additional compliance requirements, outdated financial records, and avoidable documentation issues.
Professional Insight
Most Company Strike Off applications are delayed because companies begin the closure process before completing their statutory obligations. Reviewing pending Annual ROC Filing, ensuring directors have completed DIR-3 KYC Filing, resolving outstanding matters related to GST Registration, and verifying records maintained since Private Limited Company Registration can significantly improve the likelihood of a successful strike off application.
Get Expert Company
Strike Off Support
Why Choose Taxced for Company Strike Off?
Closing a company involves more than simply filing Form STK-2. It requires careful eligibility assessment, statutory compliance review, accurate documentation, and adherence to the requirements of the Companies Act, 2013.
Experienced CA, CS & Legal Professionals
Our multidisciplinary team has extensive experience handling company strike off, ROC compliances, and corporate restructuring matters for businesses across India.
Complete End-to-End Assistance
From reviewing eligibility and preparing statutory documents to filing Form STK-2 and coordinating with the Registrar of Companies (ROC), we manage the entire closure process under one roof.
Thorough Compliance Review
Before filing the application, we review pending compliances, statutory records, and corporate obligations to minimise the risk of delays, objections, or rejection.
Timely & Accurate Filing
Our structured compliance process helps ensure that all required documents are prepared accurately and submitted within the applicable legal framework.
FAQs
(common question Answered)
What is Company Strike Off?
Company Strike Off is the legal process of removing a company’s name from the Register of Companies maintained by the Ministry of Corporate Affairs (MCA). Once approved by the Registrar of Companies (ROC), the company is dissolved and ceases to exist as a legal entity.
Who is eligible to apply for Company Strike Off?
A company may apply for voluntary strike off if it has ceased business operations, has no outstanding liabilities, obtains the required shareholders’ approval, and satisfies the eligibility conditions under Section 248 of the Companies Act, 2013.
What is Form STK-2?
Form STK-2 is the prescribed application form used to request the voluntary strike off of a company from the Register of Companies. It is filed electronically with the Ministry of Corporate Affairs along with the required supporting documents.
What documents are required for Company Strike Off?
Commonly required documents include a Board Resolution, Special Resolution or shareholders’ consent, CA-certified Statement of Accounts, Indemnity Bond, Affidavit, Form STK-2, and a valid Digital Signature Certificate (DSC).
Can a company with outstanding liabilities apply for strike off?
Generally, no. A company should settle its outstanding liabilities, including loans, taxes, statutory dues, and creditor obligations, before applying for voluntary strike off.
How long does the Company Strike Off process take?
The timeline depends on the company’s compliance status, document readiness, and the processing time of the Registrar of Companies (ROC). The review and approval process may vary from case to case.
Is Company Strike Off the same as company liquidation?
No. Company Strike Off is generally available for eligible inactive companies with no outstanding liabilities, whereas liquidation is a separate legal process governed by different provisions and is commonly used when a company is unable to continue its operations or needs to wind up its affairs.
Can an inactive company simply stop filing ROC returns instead of applying for strike off?Can an inactive company simply stop filing ROC returns instead of applying for strike off?
No. An inactive company continues to exist as a legal entity until it is formally removed from the Register of Companies. Simply discontinuing business operations does not legally close the company.
Can a company apply for strike off if Annual ROC Filing is pending?
Pending statutory compliances may affect the strike off process. Companies should review and complete applicable compliances before filing the strike off application to improve the likelihood of approval.
Why choose Taxced for Company Strike Off?
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