Simple and Cost-Effective Closure
Strike off is one of the most affordable ways to legally close a company compared to complex liquidation procedures.
Company Strike Off
Professional guidance from Shree Meeracorp
Company Strike Off is a legal procedure through which a company’s name is officially removed from the records of the Registrar of Companies (ROC) under the Companies Act, 2013. This process is generally used by businesses that have…
Sapna Singh
Legal Advisor
8800896808About Company Strike Off
Company Strike Off is a simplified legal method to close a business entity that is no longer operational. Under the Companies Act, 2013, the Registrar of Companies (ROC) has the authority to remove a company’s name from the official register if the company has remained inactive or if the owners voluntarily decide to discontinue the business.
Once the strike-off process is completed, the company legally ceases to exist and cannot conduct any business activities. Before applying for strike off, the company must ensure that it…
Read full overview
Company Strike Off is a simplified legal method to close a business entity that is no longer operational. Under the Companies Act, 2013, the Registrar of Companies (ROC) has the authority to remove a company’s name from the official register if the company has remained inactive or if the owners voluntarily decide to discontinue the business.
Once the strike-off process is completed, the company legally ceases to exist and cannot conduct any business activities. Before applying for strike off, the company must ensure that it has cleared all outstanding liabilities, closed its bank accounts, and completed all statutory filings with the Ministry of Corporate Affairs (MCA).
Strike off can occur in two ways: voluntarily by the company’s directors and shareholders, or compulsorily by the ROC if the company fails to comply with legal filing requirements for a long period.
Although this method is quicker and less expensive compared to formal liquidation or winding up, it is important to note that directors may still be held responsible for any undisclosed debts or legal issues discovered later.
What this service covers
Faster Process
The strike-off procedure is relatively quicker and can usually be completed within a few months.
Reduced Compliance Burden
Once the company is struck off, it is no longer required to file annual returns or maintain statutory compliance.
Legal Closure of Business
The process ensures that the company is officially removed from government records and cannot incur further compliance obligations.
View more highlights
Helps Maintain Clean Business Records
Closing inactive companies through strike-off keeps official records accurate and prevents penalties due to non-compliance.
Your next steps, made clearer.
- 01
Board Meeting
The directors of the company hold a board meeting to discuss and approve the proposal for closing the company.
- 02
Shareholder Approval
The company must obtain approval from at least 75% of the shareholders through a special resolution.
- 03
Settlement of Liabilities
All outstanding debts, taxes, employee payments, and other liabilities must be cleared before applying for strike off.
- 04
Preparation of Financial Statement
A statement of accounts showing that the company has no remaining assets or liabilities must be prepared and certified by a Chartered Accountant.
View remaining steps
- 05
Filing Application with ROC
The company files Form STK-2 with the Registrar of Companies along with the required documents and government fee.
- 06
Public Notice
The ROC publishes a public notice to allow any interested parties to raise objections against the strike-off application.
- 07
Final Approval
If no objections are received within the prescribed period, the ROC removes the company’s name from the register and issues a notice of dissolution.
Your document checklist
- Statement of Accounts certified by a Chartered Accountant
- Indemnity Bond (Form STK-3) signed by all directors
- Affidavit (Form STK-4) confirming no pending liabilities
- Special Resolution copy passed by shareholders
- Bank Account Closure Certificate
- PAN and Aadhaar copies of all directors
View all documents
- Board Resolution approving the strike-off
- Application Form STK-2
Frequently asked questions
How long does the company strike-off process take?
The strike-off procedure generally takes around 3 to 6 months, depending on document preparation and the mandatory public notice period.
Can a company be revived after being struck off?
Yes, a company can be restored by filing an appeal with the appropriate authority or tribunal within the prescribed time if there is a valid reason.
Is it necessary to clear all liabilities before applying for strike off?
Yes, the company must clear all its debts, taxes, and obligations before filing the strike-off application.
What happens to the directors after the company is struck off?
Even after the company is removed from the register, directors may still be held responsible for any undisclosed liabilities or legal issues discovered later.
Plan your next step with Shree Meeracorp.
Speak to our Lucknow team about your business requirement.