Company Strike Off
Running a company that's no longer active is a liability you don't want. You're still required to file annual returns, pay fees, and stay compliant with ROC rules, even if the business hasn't done a single transaction in years. That adds up fast in both money and stress.
The good news? You can close it legally. Company strike off is the formal process of removing your company's name from the Ministry of Corporate Affairs register. Once it's done, the company ceases to exist as a legal entity, and all those compliance obligations go away.
This guide covers everything you need to know: eligibility, documents, the STK-2 form, timeline, and how Legalxindia can handle the entire process for you at a starting price of ₹9,999.
Table of Contents
- What is Company Strike Off
- Eligibility for Company Strike Off Under Section 248
- Documents Required for Strike Off
- Step-by-Step Process to Strike Off a Company
- Timeline for ROC Approval
- Why Choose Legalxindia for Company Strike Off
- Frequently Asked Questions
What is Company Strike Off
Simply put, it's a way to legally shut down a company that's no longer functioning. The Registrar of Companies removes the company's name from the official MCA register, and the company stops existing as a legal entity from that point forward.
This is different from just abandoning your company or letting it go dormant. An abandoned company still has legal obligations. A struck-off company doesn't.
How It Works
The process is governed by Section 248 of the Companies Act, 2013. There are two ways a company can get struck off:
- Voluntary strike off- The directors themselves apply to the ROC using Form STK-2. This is the route most defunct private companies take.
- Compulsory strike off- The ROC initiates this on its own when a company fails to file returns for a long time or shows no signs of activity. You don't want this to happen to you. It can block your directors from starting new companies.
Going the voluntary route is always better. You stay in control, you do it on your terms, and you avoid penalties.
Strike Off vs Winding Up
A lot of people confuse these two. They're not the same thing.
Feature | Strike Off | Winding Up
Applicable to | Defunct / inactive companies | Companies with assets, liabilities, or ongoing operations
Process | Application via STK-2 | Court-supervised or tribunal process
Time taken | 30 to 60 days | Several months to years
Cost involved | Low (starting ₹9,999 with Legalxindia) | Significantly higher
Best for | No active operations, nil or minimal assets | Companies with pending dues, employees, or creditors
If your company hasn't done business in a while and has no major outstanding liabilities, strike off is almost certainly the right path. Winding up is for more complex situations.
Eligibility for Company Strike Off Under Section 248
Not every company qualifies. Before you file anything, you need to check whether your company meets the criteria set out under Section 248 of the Companies Act, 2013.
Who Can Apply
Your company is eligible for voluntary strike off if it meets at least one of these conditions:
- The company was never able to start its business after incorporation
- The company hasn't been carrying on any business or operations for the past two or more financial years
- The company has no assets or liabilities as of the date of application
- The company has closed its bank accounts
The key phrase here is "no business or operations." If your company hasn't generated income, made payments, or entered into any transactions for a meaningful period, it likely qualifies.
Who Cannot Apply
there's a list of companies that are explicitly barred from applying for strike off. You can't file STK-2 if your company:
- Has pending litigation in any court
- Has changed its name or shifted its registered office in the past 3 months
- Has made a disposal for value to a director or connected person in the past 3 months
- Has engaged in any other activity except for making an application for strike off in the past 3 months
- Is a listed company
- Is a Section 8 company (not-for-profit)
- Is a Nidhi company
- Has an active vanishing company notice from the ROC
- Has outstanding dues to any government department or regulatory authority
Real talk: if your company has unpaid taxes, pending GST returns, or outstanding TDS, you need to clear all of that before you apply. ROC will check.
Also, all directors must give their consent. Every director on record has to sign the application, so if there's a disagreement among directors, that needs to be sorted first.
Documents Required for Strike Off
Getting your documents right is honestly the most important part of this process. Missing or incorrect paperwork is the number one reason applications get delayed or rejected.
Core Documents
Here's what you'll need to prepare:
- Form STK-2 (duly filled and signed by a majority of directors)
- Indemnity bond in the prescribed format (signed by all directors and notarized)
- Affidavit by all directors confirming the company has no assets or liabilities
- Statement of accounts showing nil assets and nil liabilities (certified by a CA)
- Board resolution authorizing the application for strike off
- Consent of all directors in writing
- Copy of PAN card of the company
- Proof of closure of bank account (bank closure letter or nil balance certificate)
Every document needs to be accurate and consistent. The dates, names, and CIN number must match across all forms. One mismatch can send everything back to square one.
Financial Statement Requirements
The statement of accounts is a critical piece. Here's what it must show:
- It must be prepared as of a date not earlier than 30 days before the date of filing
- It must show zero or negligible assets
- It must show zero liabilities
- It must be certified by a practicing Chartered Accountant
If your company still has a bank balance, you'll need to either distribute it or close the account and bring it to nil before preparing this statement. Same goes for any pending creditors or loans.
Pro tip: Don't try to prepare these documents yourself unless you have an accounting background. A small error in the statement of accounts can lead to rejection. Legalxindia's service includes statement of accounts preparation as part of the ₹9,999 package.
Step-by-Step Process to Strike Off a Company
The process isn't complicated, but it does have a specific order. Skipping steps or getting the sequence wrong will cause problems down the line.
Before You File
- Stop all business operations.Make sure no transactions, contracts, or activities are happening after you decide to close.
- File all pending compliance.This includes any overdue annual returns, financial statements, GST returns, and income tax filings. ROC will check your compliance history.
- Clear all dues.Repay any loans, clear outstanding vendor payments, and make sure there are no pending statutory dues to government departments.
- Close the bank account.Get a formal closure confirmation letter from the bank. This is a required document.
- Get a CA to prepare the statement of accounts.This must show nil assets and nil liabilities as of the date you're applying.
- Hold a board meeting.Pass a resolution approving the application for strike off. All directors must consent.
Filing the STK-2 Form
- Prepare Form STK-2.This is the official application form for voluntary strike off. It must be signed by a majority of directors.
- Attach all documents.Indemnity bond, affidavit, board resolution, statement of accounts, bank closure letter, and director consents all go in here.
- Get the form digitally signed.The authorized director signs the form using their DSC (Digital Signature Certificate).
- Submit on the MCA portal.The form is filed online at mca. gov. The government fee for filing STK-2 is included in Legalxindia's service package.
After Submission
- ROC publishes a notice.After receiving your application, the Registrar publishes a public notice in the Official Gazette giving 30 days for any objections.
- Objection period.If no one files an objection (creditors, government departments, or other stakeholders), the process moves forward.
- ROC issues the final order.Once satisfied, the ROC publishes a notice of dissolution and strikes the company off the register.
- You receive confirmation.You'll get an official communication confirming the company has been dissolved.
From the time you submit STK-2 to the final strike off notice, the typical timeline is 30 to 60 days, but government processing times can vary, so build some buffer into your expectations.
Timeline for ROC Approval
One of the most common questions people ask is: how long does this actually take?
Here's a realistic breakdown:
Stage | Estimated Time
Document collection and preparation | 5 to 10 days
CA certification of statement of accounts | 2 to 5 days
Notarization of indemnity bond and affidavits | 1 to 3 days
STK-2 filing on MCA portal | 1 to 2 days
ROC processing and public notice period | 30 days
Final strike off order issued | 7 to 15 days after notice period
Total (typical) | 45 to 65 days
Keep in mind that delays can happen if the ROC has a high volume of applications, if there are errors in your submission, or if objections are filed during the public notice period.
Legalxindia's team tracks your application status and follows up with the ROC on your behalf, so you're not left wondering what's happening.
Why Choose Legalxindia for Company Strike Off
Look, you could try to do this yourself. The MCA portal is accessible to anyone, but here's the reality: most DIY applications take much longer, face more rejections, and end up costing more in the long run because of errors that need fixing.
Legalxindia has helped over 15,000 clients across India with company compliance and closure services. The team includes qualified Chartered Accountants and Company Secretaries who handle this kind of work every day.
What's Included in Our Service
Starting at just ₹9,999, Legalxindia's company strike off service includes:
- Eligibility assessment to confirm your company qualifies
- Complete document preparation (all forms, bonds, affidavits)
- Statement of accounts preparation by a CA
- Notarization support
- Form STK-2 preparation and filing on the MCA portal
- Government filing support throughout the process
- Expert CA assistance at every step
- 100% online process, no need to visit any office
The processing time is 30 to 60 days, and the entire process is handled online.
Legalxindia vs Doing It Yourself
Factor | Legalxindia | DIY Approach
Expert guidance | Yes, dedicated CA support | No
Document preparation | Fully handled | You prepare everything
Statement of accounts | Prepared and certified by CA | You need to hire a separate CA
Notarization support | Included | You arrange this yourself
MCA portal filing | Done by experts | You do it yourself
Error risk | Very low | High for first-timers
Time to complete | 30 to 60 days | Often longer due to revisions
Starting price | ₹9,999 | Variable, often more when errors occur
Honestly, for something as permanent as closing a company, getting it right the first time is worth it. The ₹9,999 fee is reasonable when you consider what's included and how much time and stress you save.
You can reach Legalxindia at +91-9635685435 or email info@legalxindia. com. The team promises an expert callback within 30 minutes of your inquiry.
Frequently Asked Questions
1. What is the government fee for filing Form STK-2?
The government fee for Form STK-2 is prescribed under the Companies (Registration Offices and Fees) Rules. Legalxindia's package includes government filing support, and the ₹9,999 starting price covers professional fees and government charges where applicable.
2. Can I apply for strike off if my company has pending GST returns?
No. You need to clear all pending statutory compliance before applying. This includes GST returns, income tax filings, and TDS returns. ROC checks compliance status before processing your application.
3. What happens to directors after the company is struck off?
Directors are relieved of all company-related obligations once the strike off is complete. However, if the company was struck off compulsorily (by the ROC), directors may face disqualification under Section 164(2) of the Companies Act. This is another reason to go the voluntary route.
4. Can a struck-off company be restored?
Yes. Under Section 252 of the Companies Act, 2013, any aggrieved party can apply to the National Company Law Tribunal for restoration within 20 years of the strike off date, but restoration is only granted in specific circumstances and isn't guaranteed.
5. Do I need all directors to sign the application?
Form STK-2 must be signed by a majority of directors. However, all directors need to provide their individual consent and sign the affidavit. So while not every director needs to sign the main form, everyone needs to be involved in the supporting documents.
6. Can a company with bank balance apply for strike off?
Not directly. The statement of accounts must show nil assets, which means you need to close the bank account first and distribute or transfer any remaining funds before filing. Only after the bank account is closed and the balance is nil can you proceed.
7. What's the difference between a defunct company and an inactive company?
A defunct company is one that has permanently stopped all operations and has no intention of resuming business. An inactive company might be temporarily dormant but could restart later. Strike off applies to defunct companies. Inactive companies that plan to resume operations might consider the "dormant company" status instead, which is a separate registration under MCA.
8. How long does Legalxindia take to process a company strike off?
The processing time is 30 to 60 days from the date of filing Form STK-2 with the MCA. The actual government processing and public notice period account for most of this time. Legalxindia's team handles the preparation and filing quickly so you don't lose time on the administrative side.
9. What if someone objects during the 30-day public notice period?
If an objection is received, the ROC will pause the process and investigate. Typical objectors include creditors, employees, or government departments who have pending claims against the company. This is why clearing all dues before filing is absolutely essential. If there are valid objections, the ROC may reject the strike off application.
10. Is company strike off the right option for my company, or should I wind it up?
Strike off is the right option if your company has no active business, no significant assets, no liabilities, and no pending litigation. If your company has employees with pending dues, creditors, or complex assets, winding up may be more appropriate. Legalxindia offers a free eligibility assessment to help you decide which route fits your situation. Call +91-9635685435 or get started online at legalxindia. com.