Company Strike Off is a simplified legal procedure used to remove a company’s name from the official records of the Registrar of Companies (ROC). It is an ideal option for businesses that are no longer operational and wish to close down without undergoing a lengthy winding-up process.

What is Company Strike Off?

Strike off refers to the voluntary removal of a company’s name from the register maintained by the Ministry of Corporate Affairs (MCA). Once approved, the company is dissolved and ceases to exist as a legal entity.

When Can a Company Apply for Strike Off?

A company may apply for strike off if:

• It has not commenced business since incorporation, or

• It has ceased operations for a considerable period

• It has no outstanding liabilities or debts

• It is not involved in any ongoing litigation or legal proceedings

• All directors and shareholders agree to close the company

Legal Provision

Company strike off is governed under Section 248 of the Companies Act, 2013 and is processed by filing Form STK-2 with the ROC.

Documents Required

The following documents are generally required for filing a strike-off application:

• Board resolution approving strike off

• Special resolution by shareholders or consent of 75% shareholders

• Indemnity bond signed by directors

• Affidavit from directors

• Statement of accounts showing nil assets and liabilities (certified by a Chartered Accountant)

• Copy of PAN card of directors

• Latest financial statements

• Proof of closure of bank accounts

Procedure for Company Strike Off

1. Board Meeting

Conduct a Board Meeting to approve the proposal for strike off.

2. Shareholder Approval

Obtain consent of shareholders by passing a special resolution or through written consent.

3. Clear Liabilities

Ensure all outstanding liabilities, taxes, and dues are fully settled.

4. Close Bank Accounts

Shut down all bank accounts in the company’s name.

5. Prepare Documents

Draft affidavits, indemnity bonds, and financial statements.

6. File Form STK-2

Submit the strike-off application with ROC along with required documents and fees.

7. ROC Verification

The ROC reviews the application and publishes a notice for public objections.

8. Strike Off Approval

If no objections are received, the ROC removes the company’s name from the register and issues a dissolution notice.

Important Points to Consider

• The company must have no pending liabilities

• All statutory filings should be updated before applying

• The statement of accounts must not be older than 30 days

• Directors remain responsible for any liabilities even after strike off

Consequences of Not Closing an Inactive Company

Failing to strike off an inactive company can lead to:

• Continuous compliance requirements

• Accumulation of penalties and late fees

• Disqualification of directors

• Legal complications in the future

Benefits of Company Strike Off

• Quick and cost-effective closure method

• Eliminates ongoing compliance burden

• Avoids penalties for non-filing

• Provides a clean and legal exit

How We Assist

• Assessment of eligibility for strike off

• Drafting resolutions and required documents

• Filing Form STK-2 with ROC

• Handling queries and follow-ups with authorities

• Complete support until company closure