Closure / Strike Off

Strike Off is a process through which a company can be removed from the records of the Registrar of Companies (ROC) and its legal existence is closed. Companies that are inactive, not carrying on business, or no longer required can opt for voluntary closure by following the prescribed procedure under the Companies Act, 2013.

At CorpAlign, we provide end-to-end assistance for company strike off and closure, ensuring proper documentation, regulatory compliance, and smooth completion of the closure process.

Our Strike Off / Closure Services
• Eligibility assessment for company closure
• Preparation of Board Resolution
• Shareholder approval assistance
• Preparation and filing of ROC forms
• Filing of Strike Off Application (Form STK-2)
• Preparation of required affidavits and indemnity bonds
• Preparation of financial statements and supporting documents
• Assistance in closure of liabilities and pending compliances
• Follow-up with MCA for approval
• Post-closure compliance guidance

Eligibility for Company Strike Off
A company may apply for strike-off if:
• It has not commenced business since incorporation; or
• It has not carried on any business activity for the preceding two financial years; and
• It has no outstanding liabilities or obligations.
Strike off is generally suitable for companies that want to close operations in a legally compliant manner.

Benefits of Company Closure / Strike Off
• Relief from annual compliance burden
• Avoidance of future ROC penalties
• Legal closure of inactive business
• Reduced administrative and operational costs
• Proper discontinuation of business activities
• Compliance with Companies Act requirements
• No ongoing legal proceedings or regulatory restrictions exist

Basic Requirements for Strike Off
• Company should have no outstanding liabilities
• All pending statutory compliances should be completed
• Consent of shareholders should be obtained
• Bank account closure and asset/liability settlement should be completed
• Required ROC filings must be submitted

Important Legal Considerations
• Directors may remain liable for certain acts even after strike off
• Company assets and liabilities must be properly settled before closure
• False declarations may attract penalties and legal action
• Regulatory approvals may be required in specific cases