Closing a company that is no longer operational requires proper legal procedures. Businesses that are inactive, have achieved their objectives, or no longer wish to continue operations can opt for Strike Off Company Services to formally remove the company’s name from the records of the Registrar of Companies (ROC).
This article explains the strike off process, eligibility, documents required, procedure, and penalties involved.
What is Strike Off of a Company?
Strike off is a legal method of closing a company by removing its name from the Register of Companies maintained by the ROC under the Companies Act, 2013.
Once the company is struck off:
-
It ceases to exist as a legal entity
-
Business operations must stop
-
Compliance obligations end
This process is generally suitable for inactive or non-operational companies.
When Should You Apply for Strike Off?
A company can apply for strike off if:
-
It has not commenced business since incorporation, or
-
It has not carried on any business for the last two financial years
-
It has no outstanding liabilities
-
It has cleared all statutory dues and filings
Companies with ongoing litigation, unpaid liabilities, or regulatory defaults may not be eligible.
Forms Used for Strike Off Company Services
The primary form for voluntary strike off is:
Form STK-2
Filed with the ROC along with:
-
Indemnity bond from directors
-
Affidavit from directors
-
Statement of accounts certified by a Chartered Accountant
-
Special resolution or consent of shareholders
Step-by-Step Strike Off Procedure
-
Board Meeting – Approve strike off proposal
-
Clear Liabilities – Settle outstanding dues and close bank accounts
-
Obtain Shareholder Approval – Pass special resolution
-
Prepare Documents – Affidavits, indemnity bonds, financial statements
-
File Form STK-2 – Submit application with ROC
-
ROC Review & Public Notice – ROC issues notice for objections
-
Final Strike Off Order – Company name removed from ROC register
Benefits of Strike Off Company Services
-
Eliminates ongoing compliance burden
-
Avoids penalties for non-filing
-
Prevents director disqualification
-
Reduces unnecessary financial costs
-
Provides formal legal closure
Consequences of Not Closing Properly
If a company stops operations without filing for strike off:
-
Heavy penalties for non-compliance
-
₹100 per day late filing fees (no maximum cap)
-
Directors may be disqualified
-
Company may be forcibly struck off by ROC
Documents Required
-
Certificate of Incorporation
-
PAN of the company
-
Financial statements
-
Board resolution
-
Special resolution
-
Directors’ KYC documents
Conclusion
Strike Off Company Services provide a structured and legally compliant method to close an inactive company in India. Instead of accumulating penalties and compliance risks, companies can opt for voluntary strike off and formally dissolve their business entity.
Professional guidance ensures proper documentation, accurate filing, and smooth communication with the ROC — making the closure process efficient and stress-free.
If you would like, I can also provide:
-
seo meta title & description
-
FAQ section for this article
-
CTA-focused version for service page
-
Schema markup (BlogPosting + FAQPage)
