MCA Compliance
Company Closure Process in India (Strike Off)
Have a company you no longer use? Leaving it open means mounting penalties. Here is how to close it cleanly via strike off under Section 248 (STK-2).
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An inactive company does not just sit quietly — it keeps accruing annual-filing obligations and ₹100/day late fees, and its directors risk disqualification. Closing it formally stops all of that.
Quick answer
The simplest closure for an eligible inactive company with no liabilities is a voluntary strike off under Section 248, filed in STK-2. You must first clear dues, file pending returns, and prepare affidavits, an indemnity bond and a statement of accounts. The ROC then strikes the company off the register.
When strike off is the right route
Strike off suits a company that has ceased business (or never commenced) and has no assets or liabilities. Where there are assets, liabilities or disputes, a formal winding up applies instead.
The process
- Confirm eligibility and what is pending.
- File any overdue returns (AOC-4/MGT-7) and clear dues.
- Pass board and special resolutions.
- Prepare affidavits, indemnity bond and a statement of accounts.
- File STK-2; the ROC reviews, may publish a notice, and strikes the company off.
Why not just abandon it?
Abandoning a company keeps the penalties and disqualification risk running. Strike off is a clean, recorded exit — far better than letting it lapse.
Common mistakes
- Abandoning instead of closing
- Applying with unfiled returns or unpaid dues
- Trying to strike off a company with liabilities
- Skipping the required affidavits/accounts
Close it properly, and the penalty clock finally stops.
Ready to act?
Close your company the right way
We regularise pending filings, prepare the documents and file STK-2 so the company exits cleanly and the penalties stop.
Frequently asked questions
How do I close a private limited company?
The simplest route for an inactive company with no liabilities is a voluntary strike off under Section 248, filed in STK-2 — after clearing dues, filing pending returns and preparing affidavits, an indemnity bond and a statement of accounts.
What is STK-2?
The MCA form through which a company applies to have its name struck off the register voluntarily.
Can I just stop filing instead of closing?
No. An inactive company keeps accruing ₹100/day late fees per form and director-disqualification risk. Closing it formally stops that.
What are the conditions for strike off?
The company must have ceased business (or never started), have no liabilities, clear dues and file pending returns, with director and member approval.
How long does strike off take?
Typically a few months, including any pending-return filing and the ROC's review and notice period.
What if my company has liabilities or disputes?
Strike off may not be available; a formal winding up could be required instead.
Related MFA services
If you want this handled rather than done yourself, these are the matching services.
Written by
MyFinancialAdvisory Editorial
Editorial guidance prepared for business owners and reviewed before production publication.
Reviewed by MyFinancialAdvisory Compliance Team
Written against official sources, with the governing rule named wherever a figure or deadline is given. General guidance — not advice on your specific case.
Ready to act?
Close your company the right way
We regularise pending filings, prepare the documents and file STK-2 so the company exits cleanly and the penalties stop.
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