Strike off your company - close it cleanly, completely

Striking off a company means removing its name from the Register of Companies maintained by the ROC. Once struck off, the company ceases to exist as a legal entity. Its CIN is deactivated, PAN is frozen, bank accounts are blocked, and it cannot enter into contracts, own property, or sue/be sued in its name.

Strike-off (Section 248) is a simplified process for closing dormant companies with minimal assets and liabilities. Winding up (Section 270+) is a formal NCLT-supervised process for companies with significant assets, multiple creditors, or complex liabilities. Winding up ensures proper asset distribution but takes 1-3 years and costs significantly more. Strike-off takes 30-60 days and costs less.

Fast Track Exit (FTE) is a simplified strike-off process available for companies that meet specific criteria: no secured creditors, nil or very low paid-up capital, no pending compliance liabilities, and either never commenced business or ceased operations. FTE eliminates the 30-day public notice requirement and reduces documentation, making the process faster and cheaper.

Yes. Form STK-2 can be filed on the MCA portal by any authorized director. However, a poorly prepared application can be rejected, leading to delays and additional costs. Common rejection reasons: incomplete documents, outstanding ROC fees, missing indemnity bond, or creditor objections not properly addressed. Our CA team minimizes these risks.

After strike-off, the company's assets are held by the ROC for a statutory period. If no revival application is filed, the ROC may dispose of the assets and transfer the proceeds to the government. To avoid this, distribute all assets to shareholders through a board resolution before filing STK-2.

No. Striking off a company does not automatically extinguish director liability for pre-strike-off debts, obligations, or legal proceedings. Creditors can still pursue directors for recovery of dues that arose before the strike-off. Directors remain liable for fraud, willful default, and undisclosed liabilities. Proper settlement of all known debts before strike-off is essential.

Under Section 248(2), the ROC can initiate strike-off if a company fails to file annual returns or financial statements for two consecutive years. The ROC sends an STK-2 notice to the company's registered address. You have 30 days to respond by filing Form STK-2 voluntarily or showing cause against the strike-off. Our team responds to ROC notices and files STK-2 on your behalf to maintain control of the process.

Yes, under Section 252 of the Companies Act, 2013. The company, its members, creditors, or the official liquidator can apply to the NCLT for restoration within 20 years of the strike-off. Our Revival of Struck Off Company service covers this process.

Late filing of Form MGT-7 attracts a penalty of ₹500 per day (up to ₹10 lakh) under Section 137. Late filing of Form AOC-4 attracts ₹100 per day (up to ₹10 lakh). Accumulated penalties for 2+ years of non-filing can be substantial. Clear all pending filings before striking off to avoid inheriting these penalties.

Once ROC initiates strike-off (Section 248(2)), the company receives a 30-day notice. If the company does not respond or show cause, the ROC publishes a public notice and strikes off the company within 30 days of the notice period. Total timeline from ROC notice to strike-off: 60-90 days.

No. If your company has outstanding loans or credit facilities, you must settle them before striking off. The lender's consent is typically required. Striking off a company with outstanding debts does not release the company or its directors from repayment obligations. Creditors can still initiate recovery proceedings against the struck-off company and its directors.

Form STK-2 is the application for striking off a company filed with the ROC under Section 248(1) of the Companies Act, 2013. It includes: the board resolution, indemnity bond signed by all directors, statement of accounts, list of creditors, and asset-liability statement. The form is digitally signed by all directors and filed on the MCA portal.

A special resolution (75% majority) is required only if the company's Articles of Association (AoA) mandate it. Otherwise, a board resolution is sufficient. Most companies' AoA allow strike-off by board resolution. We review your AoA to determine the correct approval requirement.

The GST registration must be cancelled separately through the GST portal. A struck off company with active GST registration will continue to attract GST compliance notices and late fees. Cancel GST registration before striking off the company. Our Premium plan includes GST cancellation coordination.

Yes. Companies that have been incorporated but never commenced business can be struck off under Section 248(1). In fact, this is a common reason for strike-off - founders realize the business idea won't work and want to close cleanly rather than pay annual compliance fees indefinitely.