Strike Off a Company (STK-2)
Strike off is the formal way to remove an inactive company from the MCA register under Section 248. We check eligibility, regularise filings and file STK-2 so your dormant company exits without lingering penalties.
Quick answer
Strike off removes a company from the Register of Companies under section 248(2), on form STK-2 filed to MCA's Centre for Processing Accelerated Corporate Exit (C-PACE). It is available only after all liabilities are extinguished, with a special resolution or the consent of 75% of members by paid-up capital. The MCA fee is ₹10,000. Section 249 blocks the application if the company did certain things in the previous three months — including changing its name or shifting its registered office to another State.
Applies to: Position as at August 2026; Companies Compliance Facilitation Scheme, 2026 runs to 31 August 2026Jurisdiction: India — Companies Act, 2013 and the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016Sources checked: 2026-08-20
Starts at
₹9,999
+ GST | MCA/government fees, additional fees, late fees and penalties vary by entity type, paid-up capital, turnover and due-date status
Timeline
Typically a few months
Documents
Accounts, NOCs & affidavits
Remove from MCA register
Section 248 / STK-2
Eligibility checked
Stop penalties
Pricing
Strike off (STK-2)
The standard voluntary closure route for an eligible inactive company. Pending returns and dues are quoted separately.
Strike Off
STK-2 application
+ GST | MCA/government fees, additional fees, late fees and penalties vary by entity type, paid-up capital, turnover and due-date status
- Eligibility check
- Affidavits & indemnity
- Statement of accounts
- STK-2 filing & tracking
Prices are professional fees and indicative. Government fees, stamp duty, DSC, PAN/TAN, state charges and third-party costs are extra and may change. A final engagement summary separates each component before payment.
Overview
What is Strike Off a Company (STK-2)?
Striking off is the process of removing a company's name from the Register of Companies under section 248. Section 248(2) is the voluntary route: a company may apply after extinguishing all its liabilities, by a special resolution or the consent of 75% of members in terms of paid-up share capital. The application is form STK-2, made under rule 4(1) of the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016, and MCA now routes it to the Centre for Processing Accelerated Corporate Exit (C-PACE) rather than your home Registrar.
There is a second, involuntary route people forget. Under section 248(1) the Registrar can start the removal himself — where a company failed to commence business within one year of incorporation, where it has not carried on business for two immediately preceding financial years and has not applied for dormant status, where the subscribers never paid for their shares and no INC-20A was filed within 180 days, or where physical verification under section 12(9) shows no business. You get thirty days to respond to that notice. Waiting to be struck off is not the same as closing, and it is far less controlled.
Section 249 is the trap. You cannot apply under section 248(2) if, at any time in the previous three months, the company changed its name or shifted its registered office from one State to another, disposed of property or rights for value, engaged in any activity beyond what is needed to wind up its affairs or comply with a statutory requirement, applied to the Tribunal for a compromise or arrangement that is not concluded, or is being wound up. Filing anyway is punishable with a fine up to ₹1,00,000, and the application must be withdrawn or rejected once the Registrar knows. Tidying up the company right before applying is exactly how people disqualify themselves.
It also differs from winding up: strike off suits clean, inactive companies, while winding up is a formal, supervised process for companies with assets, liabilities or disputes — and dormant status under section 455 is the option if you want to pause rather than end. Our strike off, dormant or winding up decision guide sets the three side by side. We handle the eligibility check, regularise filings and file STK-2.
Is it for you?
Who needs it — and who doesn't
Recommended if
- Inactive companies with no liabilities
- Companies that never commenced business
- Founders closing a dormant company to stop penalties
- Companies wanting a clean, low-cost exit
May not be needed if
- Companies with assets, liabilities or disputes — winding up instead
- Active companies
- Companies wanting to pause rather than close — dormant status under section 455 is the route
- Section 8 companies, which section 248(3) excludes from the voluntary route entirely
Benefits
Why it's worth doing right
The simplest closure
For an eligible inactive company, strike off is faster and cheaper than winding up. The MCA fee on STK-2 is a flat ₹10,000 with no additional or delay fee.
Stops the penalty clock
Closure ends the annual filing obligation, so AOC-4 and MGT-7 stop falling due and the ₹100-a-day additional fee on those two forms stops accruing.
Protects directors
A company that has not filed financial statements or annual returns for three continuous financial years disqualifies its directors for five years under section 164(2)(a). Closing cleanly before that point avoids it.
Eligibility
Eligibility & key conditions
- Company ceased business or never started
- All liabilities extinguished — not merely small
- Special resolution, or consent of 75% of members by paid-up capital
- None of the section 249 acts in the previous three months
- Pending returns filed and dues cleared
Documents
Documents required
What we need
- Statement of accounts
- Bank closure proof
- Affidavits and indemnity bond
- Board and special resolution
- Director KYC and DSCs
Process
A clear path from start to filed
Official filing
How the MCA21 — form STK-2, processed by C-PACE in non-STP mode flow works
STK-2 carries an MCA fee of ₹10,000. MCA's own instruction kit shows no additional or delay fee against it, which makes strike off unusual among MCA forms — being late does not make the form itself more expensive. What does get expensive is the pending annual filings you must clear first, because those carry ₹100 per day per form with no cap.
Processing is non-STP, meaning a person at C-PACE reviews it rather than the system approving it automatically. The Registrar must also satisfy himself under section 248(6) that sufficient provision has been made for realising amounts due to the company and discharging its liabilities, and may take undertakings from the directors.
Dissolution is not a clean break for the people involved. Under section 248(7) the liability of every director, manager, officer and member continues after dissolution and may be enforced as if the company had not been dissolved, and the proviso to section 248(6) keeps the company's assets available for its liabilities even after removal. Strike off ends the filing obligation; it does not erase what the company owed.
Time-limited, and stated with its dates so it does not mislead once it lapses: under the Companies Compliance Facilitation Scheme, 2026 (General Circular 01/2026 dated 24 February 2026, extended to 31 August 2026 by General Circular 03/2026 dated 8 July 2026), STK-2 is filed at 25% of the applicable filing fee and pending annual filings attract only 10% of the additional fees otherwise payable. After 31 August 2026 both concessions end and the scheme records that Registrars shall then take action against companies that did not use it. Check the current position on MCA's circulars page before relying on this.
Costs
Fees & cost breakdown
| Cost component | Indicative amount |
|---|---|
| Professional feeOurs. Pending filings quoted separately | From ₹9,999 |
| MCA fee on STK-2Government. Flat; MCA's kit shows no additional or delay fee | ₹10,000 |
| Pending annual filingsGovernment. Normal fee per form plus ₹100/day per form with no cap on AOC-4 and MGT-7 | If applicable |
Under the Companies Compliance Facilitation Scheme, 2026, in force to 31 August 2026, STK-2 is charged at 25% of the applicable filing fee and pending annual filings at 10% of the additional fees. Both revert after that date.
Deliverables
What you receive on completion
After this filing
What you need to stay compliant next
Retain records
Keep company records after strike off. Liability under section 248(7) survives dissolution, so the evidence that the company was solvent and clean still matters.
Close the tax side too
Strike off at MCA does not close your PAN, GST registration or TAN. Those are surrendered separately.
Avoid delays
Common mistakes & reasons for rejection
Common mistakes
- Confusing strike off with winding up
- Applying with unfiled returns or unpaid dues
- Doing the section 249 acts — shifting the registered office to another State, changing the name, or selling an asset — in the three months before applying, which disqualifies the application
- Assuming dissolution wipes out director and member liability. Section 248(7) says it does not
- Abandoning the company instead of closing it, and letting the Registrar strike it off under section 248(1) while directors run into section 164(2)(a) disqualification
Why filings get rejected or delayed
- A section 249(1) act inside the previous three months — the application must be withdrawn or rejected once the Registrar is on notice, and filing in breach is punishable with a fine up to ₹1,00,000
- Liabilities not actually extinguished, or a statement of accounts that shows them
- Annual filings still pending for earlier years
- The special resolution or 75%-by-paid-up-capital consent missing or defective
- A section 8 company applying under section 248(2), which section 248(3) does not permit
- Recovery: STK-2 is non-STP, so defects usually come back as a query from C-PACE rather than an outright rejection. Where the bar is the three-month lookback, there is no fixing the paperwork — the fix is to wait out the three months and re-apply
Risks
Penalties & risks of getting it wrong
Applying in breach of section 249
Fine which may extend to ₹1,00,000 under section 249(2), and the application is withdrawn or rejected under section 249(3).
Leaving the company unfiled instead of closing it
AOC-4 and MGT-7 keep falling due at ₹100 per day per form with no cap, and after three continuous financial years of non-filing every director is disqualified for five years under section 164(2)(a) — in that company and in every other company.
Liability after dissolution
Section 248(7) continues the liability of every director, manager, officer and member as if the company had not been dissolved, and the company's assets stay available for its liabilities under the proviso to section 248(6).
AI-powered assistance
AI does the heavy lifting. Experts make the call.
AI assists with checks, drafting and explanations only. A qualified professional reviews every defined checkpoint and the final filing before submission. AI does not make consequential compliance decisions on its own.
Strike off your dormant company
We check eligibility, clear pending filings and file STK-2 so your inactive company exits the register cleanly.
Compare
Strike Off a Company (STK-2) vs Company Closure (overview)
| Factor | Strike Off a Company (STK-2) | Company Closure (overview) |
|---|---|---|
| Focus | The STK-2 strike-off route | Closing a company (strike off as the main route) |
| Best for | Clean, inactive companies | Inactive companies generally |
Why MyFinancialAdvisory
A more accountable way to stay compliant
Quality & accountability
Reviewed by compliance experts
Every strike off a company (stk-2) engagement is prepared with structured checks and signed off by qualified professionals before anything is filed — speed without sacrificing accuracy.
Reviewed by
Reviewed by MyFinancialAdvisory Compliance Team
Company law & ROC review
Our ROC and MCA work is prepared with AI-assisted checks and reviewed by qualified professionals experienced in company law and MCA filings before any form is filed.
Structured document checks
Documents and eligibility follow structured checks before expert review.
Expert-reviewed before filing
A qualified professional signs off every defined checkpoint.
Compliance-safe guidance
Advice mapped to current rules — no shortcuts, no guesswork.
Resources
Related guides & reading
Strike Off vs Dormant vs Winding Up
Which exit a company actually qualifies for, and the three-month rule that disqualifies most applicants.
Read moreCompany Closure Process
Strike off a company you no longer need.
Read moreROC Annual Filing Checklist
Every annual filing and deadline a company must hit.
Read moreKeep exploring
Hub
MCA / ROC compliance
Annual filings, changes and closures for companies and LLPs, tracked end to end.
Service
Company Closure
Close a company cleanly via strike off (STK-2).
Service
Winding Up Company
Formal winding up where strike off isn't an option.
Service
Dormant Company Filing
Obtain and maintain dormant status (MSC-1/MSC-3).
Service
LLP Closure
Strike off an inactive LLP via Form 24.
FAQs
Strike Off a Company (STK-2) — frequently asked questions
What does striking off a company mean?
Removing the company's name from the Register of Companies under section 248, via form STK-2 — the voluntary closure route for an eligible inactive company. On publication of the notice in the Official Gazette the company stands dissolved.
Strike off vs winding up — what's the difference?
Strike off is the simpler route for clean, inactive companies whose liabilities have all been extinguished. Winding up is a formal, supervised process for companies with assets, liabilities or disputes to resolve. If you only want to pause rather than end, dormant status under section 455 is a third option.
What are the conditions to strike off?
The company must have ceased business or never started, must have extinguished all its liabilities, and must pass a special resolution or obtain the consent of 75% of members in terms of paid-up share capital. Pending returns and dues have to be cleared first, and none of the acts listed in section 249 can have happened in the previous three months.
What is the section 249 three-month rule?
Section 249(1) bars an application under section 248(2) if, at any time in the previous three months, the company changed its name or shifted its registered office from one State to another, disposed of property or rights for value, engaged in any activity beyond what is necessary to make the application or wind up its affairs or meet a statutory requirement, applied to the Tribunal for an unconcluded compromise or arrangement, or is being wound up. Filing in breach carries a fine up to ₹1,00,000 and the application is withdrawn or rejected.
What does MCA charge for STK-2?
₹10,000, and MCA's instruction kit shows no additional or delay fee against the form. Our professional fee is separate and is the only amount we receive. Under the Companies Compliance Facilitation Scheme, 2026, which runs to 31 August 2026, STK-2 is charged at 25% of the applicable filing fee.
How long does it take?
Typically a few months, including any pending-return filing and the Registrar's review and public notice period. STK-2 is processed in non-STP mode, so a person reviews it rather than the system approving it automatically.
Do I have to file pending returns first?
Yes. Overdue annual returns and financial statements, with their additional fees, generally must be filed before STK-2. That is usually the larger part of the cost, because AOC-4 and MGT-7 carry ₹100 per day per form with no cap.
Can I strike off a company with debts?
No. Section 248(2) requires all liabilities to be extinguished before the application. Where liabilities remain, a winding up is the route.
Can a section 8 company be struck off this way?
No. Section 248(3) expressly disapplies the voluntary strike-off route to a company registered under section 8.
Does strike off end the directors' liability?
No. Section 248(7) continues the liability of every director, manager, other officer and member after dissolution, and it may be enforced as if the company had not been dissolved. The company's assets also remain available for its liabilities under the proviso to section 248(6).
What documents are needed?
A statement of accounts, affidavits, an indemnity bond, the board and special resolutions, bank-closure proof and director KYC and DSCs.
Can a struck-off company be restored?
In limited circumstances, on application to the Tribunal — but closing cleanly is far preferable to needing restoration.
What do I receive?
The eligibility assessment including the section 249 lookback, the closure pack, the filed STK-2, and tracking until the company is struck off.
References
Official sources
- Companies Act, 2013 — s.248 (removal of name), s.249 (restrictions on applying), s.250 (effect of dissolution)
- MCA instruction kit — Form STK-2 (s.248(2) r/w rule 4(1), ₹10,000 fee, non-STP, filed to C-PACE)
- MCA General Circulars — Companies Compliance Facilitation Scheme, 2026 and its extension
Rules, fees and due dates change by notification. Confirm the current position on the official portal before you act.
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