Company Strike Off Services in India play a significant role for businesses that are no longer operational or wish to formally close their legal existence. Many companies registered under the Companies Act, 2013, remain inactive due to changes in business plans, financial constraints, or completion of objectives. However, keeping an inactive company on record can lead to unnecessary compliance burdens and penalties. The company strike off mechanism provides a lawful solution for such entities.

This article provides a detailed understanding of Company Strike Off Services in India, the Company Strike Off Process in India, and how professional guidance, such as that offered by Legal N Tax India, supports accurate compliance and regulatory adherence.

What Is Company Strike Off in India

Company strike off refers to the removal of a company’s name from the Register of Companies (ROC). Once a company is struck off, it legally ceases to exist. This process is governed by Section 248 of the Companies Act, 2013, and relevant rules issued by the Ministry of Corporate Affairs (MCA).

Company Strike Off Services in India are designed for entities that:

  • Have not commenced business since incorporation

  • Are not carrying out any operations for a prolonged period

  • Do not intend to continue business activities in the future

Strike off is considered a simpler alternative to winding up, provided the company meets the prescribed eligibility conditions.

Legal Framework Governing Company Strike Off

The Company Strike Off Process in India is regulated by:

  • Section 248 to Section 252 of the Companies Act, 2013

  • Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016

The Registrar of Companies has the authority to initiate strike off proceedings either on its own motion or upon application by the company. Compliance with statutory conditions is essential to avoid rejection or future legal complications.

Eligibility for Company Strike Off

Before availing Company Strike Off Services in India, a company must satisfy certain criteria, including:

  • No ongoing business activities

  • No pending litigation or legal disputes

  • No outstanding statutory dues or liabilities

  • Closure of bank accounts and settlement of liabilities

  • No recent change in company name or registered office within the restricted period

Failure to meet eligibility conditions can result in objections or denial of the strike off application.

Company Strike Off Process in India

The Company Strike Off Process in India follows a structured approach to ensure transparency and regulatory compliance. The process generally includes the following stages:

1. Board Resolution

The company’s board of directors must approve the proposal for strike off by passing a board resolution.

2. Shareholder Approval

Consent of shareholders is obtained, usually through a special resolution or written consent from members holding the prescribed percentage of shares.

3. Settlement of Liabilities

All liabilities, including statutory dues, loans, and creditor claims, must be settled prior to filing the application.

4. Filing of Form STK-2

The company submits Form STK-2 to the Registrar of Companies along with prescribed fees and supporting documents such as affidavits, indemnity bonds, and financial statements.

5. Public Notice by ROC

The ROC publishes a public notice to invite objections from stakeholders, if any.

6. Strike Off and Dissolution

If no objections are received and all requirements are met, the ROC removes the company’s name from the register and publishes the notice in the Official Gazette.

Documents Required for Company Strike Off

Company Strike Off Services in India typically require the following documentation:

  • Board and shareholder resolutions

  • Indemnity bond and affidavit by directors

  • Statement of accounts certified by a Chartered Accountant

  • Copy of PAN and identity proofs of directors

  • Filing of pending annual returns, if applicable

Accurate documentation is critical for a smooth strike off process.

Role of a Consultant for Company Strike Off Services in India

A Consultant for Company Strike Off Services in India assists companies in navigating procedural and compliance requirements. The process involves technical filings, legal declarations, and regulatory coordination, making professional oversight valuable.

Consultants ensure:

  • Eligibility assessment before initiating strike off

  • Proper preparation and verification of documents

  • Timely filings with the MCA

  • Resolution of compliance gaps

  • Reduced risk of rejection or future disputes

Legal N Tax India provides structured compliance support by interpreting regulatory provisions and guiding companies through each stage of the process.

Benefits of Company Strike Off

Company Strike Off Services in India offer several advantages:

  • Elimination of ongoing compliance obligations

  • Avoidance of penalties for non-filing

  • Formal closure of inactive entities

  • Reduced administrative and financial burden

  • Legal clarity regarding company status

Strike off ensures that dormant companies do not remain indefinitely on government records.

Consequences of Improper Strike Off

Failure to follow the prescribed Company Strike Off Process in India may lead to:

  • Application rejection by ROC

  • Continued compliance liability

  • Director disqualification risks

  • Legal notices or penalties

Therefore, procedural accuracy and regulatory compliance are essential throughout the process.

Restoration of Struck Off Company

Under certain circumstances, a company can be restored to the register by filing an appeal before the National Company Law Tribunal (NCLT). Restoration is generally allowed if it is proven that the company was carrying on business or that strike off caused injustice to stakeholders.

Conclusion

Company Strike Off Services in India provide a lawful mechanism for closing inactive or non-operational companies. Understanding the Company Strike Off Process in India helps businesses make informed compliance decisions and avoid unnecessary liabilities. The involvement of a Consultant for Company Strike Off Services in India ensures that procedural requirements are fulfilled accurately and efficiently.

Legal N Tax India focuses on guiding businesses through regulatory frameworks with clarity and compliance-driven support, enabling orderly closure in accordance with applicable laws.