A “strike off company” is a company whose name has been officially removed from the Register of Companies (ROC) maintained by the Ministry of Corporate Affairs (MCA), making it legally dissolved under Sections 248 to 252 of the Companies Act, 2013. Strike off can be voluntary, initiated by the company through Form STK-2 with 75% shareholder approval, or suo moto, initiated by the ROC when a company fails to commence business within 1 year of incorporation or stops filing annual returns for 2 consecutive years. Once struck off, the company can no longer carry on business, sign contracts, or operate bank accounts, but its directors remain personally liable for past dues and obligations.
Since May 2023, all strike-off applications have been processed by the Centre for Processing Accelerated Corporate Exit (C-PACE), which has reduced typical exit timelines from 6–12 months under the older system to 3–6 months in 2026. The strike-off route is a faster, lower-cost alternative to formal winding up, typically used for defunct, inactive, or shell companies looking for a clean legal exit.
This 2026 guide covers everything you need, what “strike off company” means, how to read the “Strike Off” status on the MCA portal, the complete voluntary strike-off procedure (Sections 248(2), STK-2, STK-3, STK-4, STK-7), suo moto strike off by the ROC under Section 248(1), eligibility under Section 249, common rejection reasons, costs, timelines, and how to revive a struck-off company under Section 252 through NCLT or administrative restoration.
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 Register of Companies (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 Section 250(2). 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:
- Failure to commence business within one year of incorporation
- No business operations for the two preceding financial years, and has not applied for dormant status under Section 455
- Inactivity confirmed after physical verification of the registered office under Section 12(9)
- 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
Once any of these grounds is established, the ROC issues Form STK-1 to the company and all directors, allowing 30 days to respond. If no satisfactory response is received, the ROC publishes Form STK-5 as a public notice and proceeds toward dissolution via Form STK-7.
What Does “Company Status: Struck Off” Mean on the MCA Portal?
When you search a company’s Master Data on the MCA V3 portal and the Status field reads “Struck Off” (or “Strike Off”), it means:
- The Registrar of Companies (ROC) has issued Form STK-7 in the Official Gazette, dissolving the company
- The company’s CIN is no longer active, and the entity is legally extinct
- The company cannot enter into new contracts, hold property, or operate as a going concern
- Directors and shareholders remain personally liable for all pre-strike-off dues, statutory obligations, and any fraud committed before dissolution
- The company can be revived under Section 252 within 3 years (administrative) or up to 20 years (NCLT)
The “Struck Off” status is permanent unless explicitly revived through an NCLT order. It typically appears 30 days after the ROC publishes Form STK-6 / STK-5 (public notice) without receiving valid objections.
Note: If you’re verifying a vendor or partner and the MCA shows “Struck Off”, do not transact further — any payment or contract to a struck-off company has no legal recourse. Pursue directors personally for any pre-existing dues.
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: Up to ₹1,00,000 fine, plus the application is rejected by the ROC.
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 Strike-Off a Company in India?
The strike off company procedure under Section 248(2) of the Companies Act, 2013, 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
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 ranges between ₹15,000 and ₹40,000, 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 Company Status Strike Off 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:
1. Administrative Restoration by RoC: If the ROC strike off company action was due to an error or inadvertent omission by the Registrar, the company may apply directly to the RoC for administrative restoration.
2. Restoration by the NCLT (Most Common Route): The standard legal route to restore a strike off limited company:
- Section 252(1): Aggrieved party / RoC, file within 3 years from the strike-off order.
Section 252(3): Company, members, creditors, or workmen, file 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:
- File Form NCLT-9 with the NCLT bench, supported by NCLT-6 affidavit and a prescribed fee of ₹1,000.
- Attach the strike-off order, audited accounts, bank statements, MoA/AoA, board resolution, and proof of business activity.
- Serve a copy on RoC at least 14 days before the hearing.
- Attend NCLT hearing, the Tribunal evaluates if revival is “just and equitable”.
- After the revival order, file Form INC-28 with the RoC within 30 days.
- Complete all pending AOC-4, MGT-7 filings, late fees, and penalties.
- 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 |
| Cost | Low (~₹10,000–₹30,000) | High (lakhs, depending on liquidator + court fees) | Low (~₹5,000–₹15,000) |
| 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, Section 8 companies | 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.
Conclusion
Striking off a company under Sections 248–252 of the Companies Act, 2013, is the fastest, cheapest, and cleanest way to formally close an inactive or defunct company in India. The voluntary route (Form STK-2 via C-PACE) takes 3–6 months and costs ₹15,000–₹40,000, while the suo moto route initiated by the ROC follows the same dissolution outcome but without applicant control. Either way, directors remain personally liable for pre-strike-off dues, and the company remains revivable under Section 252 for up to 20 years.
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