Company Strike Off
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 stopped their operations, have no outstanding liabilities, and do not intend to continue their activities in the future. By applying for strike off, the company can legally close its business and avoid ongoing compliance requirements such as annual filings and statutory reporting. Once the Registrar approves the application and removes the company’s name from the official register, the company ceases to exist as a legal entity and cannot conduct any business activities.
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What is Company Strike Off?
Why Choose This?
Simple and Cost-Effective Closure
Strike off is one of the most affordable ways to legally close a company compared to complex liquidation procedures.
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.
Helps Maintain Clean Business Records
Closing inactive companies through strike-off keeps official records accurate and prevents penalties due to non-compliance.
Registration Process
Board Meeting
The directors of the company hold a board meeting to discuss and approve the proposal for closing the company.
Shareholder Approval
The company must obtain approval from at least 75% of the shareholders through a special resolution.
Settlement of Liabilities
All outstanding debts, taxes, employee payments, and other liabilities must be cleared before applying for strike off.
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.
Filing Application with ROC
The company files Form STK-2 with the Registrar of Companies along with the required documents and government fee.
Public Notice
The ROC publishes a public notice to allow any interested parties to raise objections against the strike-off application.
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.
Documents Required
- 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
- Board Resolution approving the strike-off
- Application Form STK-2
Frequently Asked Questions
The strike-off procedure generally takes around 3 to 6 months, depending on document preparation and the mandatory public notice period.
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.
Yes, the company must clear all its debts, taxes, and obligations before filing the strike-off application.
Even after the company is removed from the register, directors may still be held responsible for any undisclosed liabilities or legal issues discovered later.