Winding up your business the right way – Legally, Smoothly & Hassle-Free!
📌 Introduction:
In the lifecycle of every business, there may come a time when the company no longer serves its original purpose or becomes inactive. Whether it's due to strategic changes, financial constraints, or business restructuring, closing a company properly is just as important as starting one.
We provide expert assistance in Company Strike Off and Closure, ensuring your business exit is compliant, stress-free, and cost-effective. Our dedicated CS professionals help you through every legal formality, protecting you from future liabilities and penalties.
💼 What is Company Strike Off or Closure?
Company Strike Off refers to the process where a company voluntarily or compulsorily removes its name from the Register of Companies (ROC) under the Companies Act, 2013. Once struck off, the company legally ceases to exist and is considered closed.
📝 Modes of Company Closure:
1. Voluntary Strike Off (Section 248(2))
Applicable when a company:
Is not operational for 2 or more years.
Has no liabilities and has settled all dues.
Has obtained consent from shareholders/directors.
2. Strike Off by ROC (Section 248(1))
Initiated by the Registrar of Companies if:
The company fails to file annual returns/financials for two consecutive years.
The company is non-operational or inactive.
3. Winding Up (Liquidation Process)
If the company has pending liabilities or debts, formal winding up through NCLT or voluntary liquidation is followed under the Insolvency & Bankruptcy Code (IBC).
📄 Key Requirements & Documents:
Board Resolution & Shareholders' Approval
Statement of Accounts (no older than 30 days)
Affidavit and Indemnity Bond by Directors
Application in Form STK-2
Consent Letters & Identity Proofs
PAN, Incorporation Certificate, and MOA/AOA
⭐ Why Choose Us for Company Strike Off?
🚫 When NOT to go for Strike Off?
You can't apply for strike off if your company:
Has ongoing legal disputes or pending litigations
Has unsettled liabilities or bank loans
Has DIN disqualifications or director issues
📆 Timeline for Company Closure:
Generally takes 90–120 days from the date of STK-2 filing, subject to approval by ROC.
Legal closure prevents future penalties or ROC action
Protects directors from non-compliance disqualifications
Clears your company from government records
Frees up your DIN for new ventures
📌 Other Relevant Information to Include
🔍 1. Eligibility Criteria for Strike Off:
The company has not commenced business since incorporation, or
The company has not been carrying out any business for the last 2 financial years.
The company has no outstanding liabilities.
The company has filed all pending returns up to the date of application (including Income Tax Return).
It is not listed, not under inspection, not involved in any legal proceeding, or not under investigation.
⚠️ 2. Pre-Strike Off Compliance Checklist:
Before applying for strike off, ensure:
Closure of bank accounts (NOC required).
GST registration cancellation.
Clearance of all dues – statutory or financial.
No pending litigation or regulatory filings.
Directors’ DINs and company KYC are updated.
📄 3. ROC Forms and Filings:
STK-2: Main form for application.
Form MGT-7 and AOC-4: Must be filed up to the year prior to closure.
Form INC-20A: If company never started business but filed for incorporation, INC-20A must be submitted (commencement of business).
🕑 4. Processing Time:
ROC generally takes 3-4 months for approval.
Objection period: 30 days from notice published in MCA portal.
Strike off notice is published in Official Gazette after approval.
📢 5. Public Notice Requirements:
ROC issues a public notice and invites objections from stakeholders, creditors, or the general public before striking off the company.
💰 6. Government Fees (As of Latest Update):
STK-2 Filing Fee: ₹10,000
Additional professional fees vary depending on complexity, pending filings, and documentation.
📌 7. Post-Closure Responsibilities:
Retain documents for 8 years post-closure (as per Companies Act).
Avoid DIN misuse – director responsibilities don’t end with closure.
Inform stakeholders, banks, and vendors formally about the closure.
🛑 8. Consequences of Improper Closure:
Late or invalid closure may result in:
DIN disqualification of directors
Monetary penalties
Company revival by ROC or creditors
Prosecution under Companies Act, 2013