🛑 Strike Off of a Company in India

Voluntary or Regulatory Removal from the Register of Companies A Strike Off refers to the formal removal of a company’s name from the Register of Companies (ROC) by the Ministry of Corporate Affairs (MCA). Once struck off, the company ceases to legally exist, though it may still be liable for past dues or liabilities.

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⚖️ Legal Basis for Strike Off

The process is governed by:

• Section 248 of the Companies Act, 2013
• Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016

A company can be struck off either voluntarily by the directors or by the ROC for non-compliance or inactivity.

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🔄 Types of Strike Off

Type	Description
Voluntary Strike Off	Company voluntarily applies for closure when it has no liabilities and is inactive.
ROC-Initiated Strike Off	ROC removes company for non-filing of returns, non-operation, or violations.

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📋 Common Reasons for Strike Off

• Not carrying on any business for two or more years
• Failure to file Annual Returns (MGT-7) or Financial Statements (AOC-4)
• Non-response to notices issued by the ROC
• Voluntary application from directors/shareholders when business is no longer operational

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🧭 Procedure for Voluntary Strike Off – Step-by-Step

1. Hold Board Meeting Pass a resolution to apply for strike off and authorize a director to proceed.
2. Clear Liabilities Ensure the company has no outstanding liabilities (debts, dues, taxes).
3. Special Resolution / Consent
   • If applicable, hold a general meeting and pass a special resolution.
   • Alternatively, obtain consent from 75% shareholders in paid-up capital.
4. File Form STK-2 with ROC Attach supporting documents like:
   • Board and shareholder resolutions
   • Statement of accounts (not older than 30 days)
   • Indemnity Bond (Form STK-3)
   • Affidavit from directors (Form STK-4)
   • PAN, Aadhaar, ID Proofs
5. Review by ROC ROC may request clarifications and issue a public notice inviting objections.
6. Publication & Final Strike Off After no objections are raised, ROC strikes off the company and publishes the notice in the Official Gazette.

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🧾 Documents Required

• Board Resolution & Special Resolution
• Indemnity Bond (STK-3)
• Affidavit by Directors (STK-4)
• Statement of Accounts certified by a CA
• Copy of PAN, Aadhaar, and identity proofs
• NOC from regulatory authorities (if applicable)

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⏱️ Timeline

The strike-off process generally takes 2 to 4 months, depending on document readiness, ROC processing time, and publication in the Gazette.

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⚠️ Important Notes

• A company must have no assets or liabilities to apply for strike-off voluntarily.
• Ongoing legal proceedings or regulatory issues may block the strike-off.
• After strike-off, the company cannot operate or hold assets, and directors lose all authority.
• ROC can strike off a company suo-moto if it is non-compliant for two consecutive years.

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📘 When Should You Consider Strike Off?

✅ The company is not active or operational ✅ You want to legally close a dormant or unused business ✅ No future plans to operate or revive the business ✅ You wish to avoid unnecessary compliance burdens

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🧠 Consequences of Strike Off

• The company legally ceases to exist
• Directors may still be liable for any undisclosed liabilities
• Revival is only possible through NCLT within 3 years
• Assets (if any) may vest with the government

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🛠️ How KLS Advisors Can Help

At KLS Advisors, we provide expert assistance for strike-off filings and closure compliance:

• Draft resolutions and affidavits
• Prepare financial statements and STK forms
• File and track STK-2 submission with ROC
• Handle legal compliance and final closure support
• Ensure end-to-end documentation and support

📧 Email: info@klsadvisors.in 🌐 Website: www.klsadvisors.in

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✅ Conclusion

Strike Off is a clean and legal way to shut down a company that is no longer in use. Whether done voluntarily or by the ROC, the process must be handled with proper legal documentation and compliance. Let KLS Advisors help you complete the strike-off process smoothly, quickly, and 100% legally.