Strike Off Company in India: Meaning, Procedure, Forms & Revival Guide

Key Takeaways

• A strike-off removes a company’s name from the ROC under Sections 248–252 of the Companies Act, 2013, legally dissolving the company. It is generally used for inactive or defunct companies with no intention of continuing business.
• Companies can be struck off voluntarily or by the ROC via suo motu. Not every company is eligible for voluntary strike-off.
• A struck-off company cannot carry on business, enter into contracts, or operate bank accounts. However, directors and officers may continue to remain liable for obligations, statutory dues, and defaults that arose before the strike-off.
• A struck-off company can be restored under Section 252 of the Companies Act, 2013 if the prescribed legal conditions are met.
• Choosing between strike-off and winding up depends on the company’s financial position.

Strike Off Company at a Glance

Detail	Information
Meaning	Removal of a company’s name from the Register of Companies (ROC), legally dissolving it
Governing Law	Sections 248–252 of the Companies Act, 2013
Governing Rules	Companies (Removal of Names) Rules, 2016
Voluntary Strike-Off Form	Form STK-2 (under Section 248(2))
Suo Moto Trigger	Failure to commence business in 1 year OR no operations for 2 consecutive financial years
Processing Authority	Centre for Processing Accelerated Corporate Exit (C-PACE) — since May 2023
Government Fee	₹10,000 (Form STK-2)
Timeline	3–6 months (board resolution to STK-7 Gazette publication)
Shareholder Approval	Special resolution — 75% paid-up share capital
Revival Window	Within 3 years (administrative) or 20 years (NCLT) under Section 252
Director Liability	Continues for pre-strike-off dues, statutory obligations, and fraud

What is a Strike Off Company? (Meaning & Status)

Under Indian corporate law, a strike-off company refers to a company whose name has been officially removed from the ROC maintained by the Ministry of Corporate Affairs (MCA). Once struck off, the company stands legally dissolved under Section 250 of the Companies Act, 2013, and can no longer:

• Carry out business activities
• Sign or enforce contracts
• Operate bank accounts (banks freeze accounts on strike-off intimation)
• Sue or be sued in its own name (except for revival proceedings under Section 252).

Any undistributed assets at the time of strike off vest with the Central Government under the common-law principle of bona vacantia. When you check the MCA portal and the company status reads “Struck Off” (or “Strike Off”), it means the company’s CIN is no longer active, and the entity has been formally dissolved by the ROC.

When a company’s status shows “Struck Off” on the MCA portal, it means the company no longer legally exists. However, directors and shareholders remain personally liable for past dues, statutory obligations, and any fraud committed before being struck off.

A strike off route offers a faster, cheaper alternative to winding up, typically used for defunct, inactive, or shell companies. Companies usually choose it when they are no longer carrying out business operations and want to formally close the entity: 

• The company has stopped operations or has no assets or liabilities.
• The company has failed to commence business within one year of incorporation.
• Directors want a clean, low-cost exit without appointing a liquidator.

Strike off can be voluntary (via Form STK-2) or involuntary / suo moto (initiated by the RoC). Since May 2023, the Centre for Processing Accelerated Corporate Exit (C-PACE) has processed all strike-off applications. This has significantly sped up corporate exits in India.

Why it matters: A company’s strike-off status directly affects creditor claims, asset recovery, and Schedule III disclosure under the Companies Act, 2013.

Strike Off Under Companies Act 2013: Legal Framework

The strike off company process is governed by Sections 248–252 of the Companies Act, 2013. It is read with the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016:

• Section 248: Power of the Registrar to remove a company’s name.
• Section 249: Restrictions on voluntary strike-off applications.
• Section 250: Effect of a company being struck off.
• Section 251: Penalty for fraudulent applications.
• Section 252: Appeal to the NCLT for restoration.
• Rules 3, 4, 7, and 8: 2016 rules eligibility, procedure, public notice, and dissolution.

Within Section 248, the law works through two sub-sections:

• Section 248(1): Suo moto strike off by the RoC for non-commencement or inactivity.
• Section 248(2): Voluntary application by the company with 75% members’ consent.

This regime replaced the older Fast Track Exit (FTE) mode, which was introduced by the MCA via General Circular No. 36/2011, and came into effect on 3 July 2011.

When Can the ROC Initiate a Suo Moto Strike Off?

Under Section 248(1) of the Companies Act, 2013, the Registrar of Companies (ROC) can suo moto strike off a company on four grounds:

1. Failure to commence business within one year of incorporation
2. No business operations for the two preceding financial years, and has not applied for dormant status under Section 455
3. Inactivity confirmed after physical verification of the registered office under Section 12(9)
4. Subscribers to the Memorandum have not paid the subscription amount they undertook to pay at the time of incorporation, AND a declaration to this effect has not been filed within 180 days.

Who is Eligible for Voluntary Strike Off Under Section 248(2)?

The Companies (Removal of Names) Rules, 2016 (Rule 3) specify which companies can apply for voluntary strike off and which are excluded under Section 249:

Eligible	Not Eligible
Private Limited Companies (inactive or defunct)	Listed companies and delisted companies
One Person Companies (OPCs) that have ceased operations	Section 8 (not-for-profit) companies — explicitly excluded under Section 248(3)
Dormant companies under Section 455	NBFCs, insurance companies, housing finance, AMCs & SEBI-regulated capital market intermediaries (Rule 3)
Companies that have not commenced business within 1 year of incorporation	Vanishing companies, or those under inspection/inquiry/investigation
Companies inactive for the 2 preceding financial years	Companies with pending prosecution, receiver/manager, or compounded offence in the last 3 months
Companies with no assets and no liabilities	Companies with unsatisfied charges or pending statutory dues

Penalty for Filing in Violation of Section 249

If a company files a strike-off application to avoid paying debts, cheat creditors, or commit fraud, then:

• The directors and officers responsible can be held personally liable to compensate anyone who suffers a loss.
• They can also be prosecuted for fraud under Section 447 of the Companies Act, 2013, which is a much more serious offence.

Section 447 provides severe punishment, including:

• Imprisonment: 6 months to 10 years (minimum 3 years if the fraud involves public interest).
• Fine: At least the amount involved in the fraud and up to three times that amount.

Tip: Before applying, ensure all annual filings (AOC-4, MGT-7) are up to date, no charges remain open on the MCA portal, and all statutory dues (income tax, GST, EPFO, ESIC) are settled.

What is the Procedure for Striking Off a Company in India?

The strike-off company procedure is filed online through the MCA V3 portal and routed to C-PACE. Here’s what is required at each stage of filing:

Step 1: Board Meeting & Board Resolution

The company holds a board meeting and passes a resolution to strike off the company. It also authorizes one director to file the application. 

Step 2: Settle All Liabilities & Close Bank Accounts

Clear all dues (loans, creditors, GST, income tax) and close company bank accounts so STK-8 reflects a nil balance.

Step 3: EGM + Special Resolution (75%)

Issue 21-day EGM notice. Pass a special resolution with 75% paid-up share capital approval, with an explanatory statement annexed.

Step 4: File Form MGT-14 within 30 Days

Mandatory filing with the RoC within 30 days of the special resolution; most rejections happen here.

Step 5: Obtain Regulatory NOCs

If regulated by RBI, SEBI, IRDA, etc., secure an NOC before applying.

Step 6: Prepare Strike Off Documents

Prepare the required forms namely: STK-3 (indemnity bond), STK-4 (director affidavit), STK-8 (CA-certified accounts, ≤30 days old), board + special resolution, director KYC, and litigation statement.

Step 7: File Form STK-2 on the MCA V3 Portal (Routed to C-PACE)

Submit Form STK-2 on the MCA V3 portal with the ₹10,000 government fee. The form must be:

• Digitally signed by a director with a valid Class 3 DSC
• Certified by a practising professional (CS, CA, or CMA)
• Routed to C-PACE (Centre for Processing Accelerated Corporate Exit) — established by MCA in May 2023 to handle all strike-off applications. C-PACE has significantly reduced processing time (from 6–12 months earlier to 3–6 months in 2026).

Step 8: Public Notice in Form STK-6 (30 Days)

RoC issues STK-6 on the MCA portal, the Official Gazette, and two newspapers (English + vernacular), inviting objections.

Step 9: Final Dissolution (Form STK-7)

If no objections, RoC publishes STK-7 in the Gazette, and the company stands dissolved from that date.

The complete procedure for striking off a company typically takes 3 to 6 months from board resolution to final STK-7 Gazette publication.

Disclaimer: This guide is for informational purposes only and does not constitute legal or professional advice. Consult a qualified Company Secretary or legal professional before filing strike-off applications.

Cost of Striking Off a Company in India (2026)

The total cost of striking off a company in India in 2026 typically starts from ₹17,000, depending on professional fees, state stamp duty, and any pending compliance dues:

Cost Component	Indicative Amount (2026)
Form STK-2 government fee	₹10,000 (fixed)
Stamp duty on STK-3 (indemnity bond)	₹500 – ₹2,000 (state-dependent, per director)
Stamp duty on STK-4 (affidavit)	₹100 – ₹500 (state-dependent, per director)
CA / CS certification of STK-8 (statement of accounts)	₹3,000 – ₹10,000
Newspaper advertisement (English + vernacular)	₹3,000 – ₹8,000
Professional / consultant fee	₹5,000 – ₹20,000
Total indicative range	₹15,000 – ₹40,000

Note: Companies with pending AOC-4, MGT-7, or income tax filings will incur additional late fees before the strike-off application can be submitted.

Involuntary (Suo Moto) Strike Off Company by RoC

The striking off of a company’s name can also happen without any application under Section 248(1). The RoC initiates the process suo moto when reasonable grounds exist. This most commonly happens due to non-filing of AOC-4 and MGT-7 for two consecutive years. 

Unlike a voluntary strike off company, this is a 3-stage involuntary procedure:

Step 1: Notice in Form STK-1: The RoC sends Form STK-1 to the company and all directors at their registered email and address. It asks for representations within 30 days along with supporting documents.

Step 2: Public Notice in Form STK-5: If no satisfactory response is received, the RoC publishes Form STK-5 on the MCA portal, the Official Gazette, and two newspapers (English + vernacular). RoC also interacts with Income Tax, GST, and other regulators. Stakeholders get 30 days to file objections.

Step 3: Final Dissolution (Form STK-7): With no valid objections, the RoC issues Form STK-7 in the Gazette. The company is then considered dissolved.

Rule: Once STK-1 is issued and the company fails to respond, it loses the right to file a voluntary STK-2 later.

How to Check Strike Off Status and Why the Date Matters?

If a company’s status shows “Strike Off,” it is essential to confirm the exact date of cessation. This date plays a key role in deciding revival timelines and the extent of director liability. It also determines how the company reports pending dues in financial statements under Schedule III of the Companies Act, 2013. 

3 Ways to Verify the Strike Off Date

1. MCA Portal (Most Reliable): Visit mca.gov.in → MCA Services → View Company / LLP Master Data → enter CIN or company name. The results page displays the current status (“Strike Off”) and the date of cessation.

2. Official Gazette: The strike-off date is officially set by the STK-7 notice in the Official Gazette. Search the e-Gazette portal for the publication date, which is the legal dissolution date.

3. Public Notices & Third-Party Tools: STK-5 / STK-6 notices help trace the timeline (not the final date). Tools like Firmway, Finanvo, and SignalX offer preliminary checks; always cross-verify with MCA.

Why Does the Strike Off Date Matter?

Knowing the exact strike-off date is essential for several reasons:

• Revival Timeline (Section 252): Company, members, creditors, or workmen can file before the NCLT within 20 years; the RoC or any aggrieved party within 3 years.
• Director Liability: Directors, officers, and members may continue to remain liable for liabilities and obligations incurred before the strike-off date.
• Due Diligence: Required for Schedule III disclosure, financial reporting, tax filings, and vendor onboarding.

How to Revive a Struck Off Company (Restoration of Company After Strike Off)?

The striking off Companies Act 2013 framework allows a struck-off company to be revived under Section 252, through two routes:

Restoration by the NCLT (Most Common Route): The standard legal route to restore a strike off limited company:

• Section 252(1): Aggrieved party within 3 years from the strike-off order files an application before the Tribunal.
• Section 252(3): Company, members, creditors, or workmen, file to NCLT within 20 years from Gazette publication.

Step-by-Step: How to Revive a Struck Off Company

Reviving a struck-off company follows a structured legal process before the NCLT. Each step must be completed for restoration to take effect:

1. File Form NCLT-9 with the NCLT bench, supported by NCLT-6 affidavit and a prescribed fee of ₹1,000.
2. Attach the strike-off order, audited accounts, bank statements, MoA/AoA, board resolution, and proof of business activity.
3. Serve a copy on RoC at least 14 days before the hearing.
4. Attend NCLT hearing, the Tribunal evaluates if revival is “just and equitable”.
5. After the revival order, file Form INC-28 with the RoC within 30 days.
6. Complete all pending AOC-4, MGT-7 filings, late fees, and penalties.
7. Upon restoration, the company regains its legal status as if it had never been struck off.

Upon restoration, the company regains its legal status from the date of strike off, as if the name had never been removed.

Practical Tips to Handle a Strike-Off Company Situation

Whether you are a director planning closure, a creditor tracking dues, or a buyer conducting due diligence, the right action depends on your position. 

• For Due Diligence: Verify the company status via the MCA portal using the CIN search and cross-check the STK-7 Gazette date. Also, review director disqualification lists and confirm details through tools like Firmway or SignalX. 
• If a Company is Already Struck Off: Stop all transactions immediately and write off dues as bad debts where applicable. You can also pursue directors personally for significant liabilities or file an NCLT restoration petition if revival serves your interest.

To Avoid Unintended Strike Off: File AOC-4, MGT-7, and ITR on time and keep statutory registers updated. Also, clear creditor and tax dues, and apply for dormant company status under Section 455 if temporarily inactive; never wait for the RoC to act.

Common Reasons Why STK-2 Gets Rejected

Even simple strike-off applications can be rejected by the ROC if the company does not meet the required conditions or submits incorrect documentation. Below are the most common reasons why Form STK-2 gets rejected:

• The company has pending annual returns (MGT-7) or financial statements (AOC-4), which leads to immediate rejection.
• Recent banking transactions show that the company is still active, making it ineligible for strike off.
• The company has outstanding loans, creditor dues, or tax liabilities, which prevent approval of the application.
• Any ongoing court case, tribunal matter, or regulatory investigation stops the strike-off process.
• Errors in the affidavit (STK-4), indemnity bond (STK-3), or missing director consent result in rejection.
• Active GST, EPFO, or ESIC registrations indicate that the company has not fully closed its operations.
• The ROC rejects applications signed by directors disqualified under Section 164(2) of the Companies Act.
• Mismatches between the company’s master data and the details submitted in Form STK-2 lead to rejection.

Fixing these issues before filing helps companies avoid rejection and ensures a smooth strike-off process with the ROC.

Tip: If you are starting a new business, choosing the right entity type reduces future compliance burden. Explore the Pvt Ltd Company Registration process before selecting the structure that suits your goals best.

Strike Off vs Winding Up vs Dormant Status

Founders often confuse these three corporate-exit routes. Here’s how they compare:

Feature	Strike Off	Winding Up	Dormant Status
Purpose	Close a defunct or inactive company	Close a company with assets and liabilities to settle	Suspend operations temporarily
Governing Section	Sections 248–252, Companies Act, 2013	Chapter XX, Companies Act, 2013 + IBC, 2016	Section 455, Companies Act, 2013
Key Form Filed	Form STK-2 (with C-PACE)	Form WIN forms / IBC forms	Form MSC-1 (with ROC)
Process	ROC/C-PACE removes name from register	Liquidator appointed + NCLT supervision + asset liquidation	Application to ROC for “dormant” classification
Status Outcome	Company legally dissolved	Company wound up and dissolved	Company remains active but inactive
Director Liability	Continues for pre-strike-off dues, fraud, and statutory obligations	Liquidator settles liabilities; director liability limited to fraud/misfeasance	Directors remain liable as the company is still active
Revival	Possible via NCLT within 3 years (or 20 years for certain parties)	Not possible after final dissolution	Possible by reactivation application to ROC
Suitable For	Inactive/defunct Pvt Ltd, OPC	Companies with assets, creditors, or pending obligations	Businesses on temporary pause (1–5 years)

If you operate an LLP instead of a company, the closure process differs. Check our guide on the LLP strike off process for entity-specific steps.

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