Closing an Inactive Company
If a company has stopped operating or never started business, keeping it alive means continuing annual filings and paying penalties if they are missed. Closing it through strike off under Section 248 is usually the simplest route.
To apply, the company generally must have no business operations, no liabilities and no pending litigation. After the application in Form STK-2 is examined, the ROC publishes a notice and then strikes the company’s name off the register.
Close your company the right way
- Eligibility and pending filings checked
- STK-2 documents and affidavits prepared
- Application filed and tracked to completion
Who Can Apply for Strike Off?
- Companies that have not started business within a year of incorporation
- Companies with no business operations for the last two financial years
- Companies with no assets or liabilities remaining
- Founders who want to avoid ongoing compliance costs
Benefits of Closing Properly
No more annual filings
Ongoing ROC and tax compliance costs end.
Protect directors
Avoid director disqualification for non-filing.
Clean exit
The company’s closure is officially recorded.
Peace of mind
No surprise penalties years later.
Documents Required
- Board resolution and shareholders’ special resolution or consent
- Indemnity bond by directors (STK-3)
- Affidavits by directors (STK-4)
- Statement of accounts certified by a CA (STK-8)
- Bank account closure letter
- Digital signatures of directors
Strike Off Process
Eligibility check
We confirm the company meets the conditions for strike off.
Clear pending items
Liabilities are settled, bank accounts closed and overdue filings completed where needed.
Resolutions and documents
Resolutions, indemnity, affidavits and statement of accounts prepared.
File STK-2
The application is filed with the government fee.
ROC notice and order
The ROC publishes a notice and then strikes off the company.
Common Mistakes to Avoid
Strike-off applications are often rejected for these reasons.
- Pending annual filings – Overdue returns generally need to be filed first.
- Bank account still open – Close the company’s bank account before applying.
- Outstanding liabilities – All dues must be settled or provided for.
- Missing CA-certified statement – A statement of accounts is required.
- Ongoing litigation – Companies with pending proceedings are not eligible.
After Filing STK-2
ROC notice
The ROC publishes a public notice inviting objections.
Strike-off order
The company’s name is removed from the register.
Keep records
Retain books for the prescribed period.
Update tax records
Surrender GST and other registrations.
Why Choose Vaidam Consultancy for Company Closure (Strike Off)
Eligibility checked first
We make sure the application won’t be rejected.
Clear quote upfront
You receive our fee and the government charges before any work begins.
One point of contact
A single consultant prepares the resolutions, files the forms and follows up with the ROC.
Complete clean-up
Pending returns and bank closure are handled before filing.
Frequently Asked Questions
Generally, overdue financial statements and annual returns up to the end of the financial year in which the company stopped business need to be filed before applying.
It usually takes a few months, as the ROC examines the application and publishes a public notice before striking off the company.
STK-2 is the application to the Registrar to remove the company’s name from the register of companies.
Yes. A struck-off company can apply to the NCLT for restoration within the time allowed, if there is a valid reason.
Assets and liabilities should be nil or settled before applying for strike off.
Yes. Winding up is a formal liquidation process, used when the company has assets or liabilities to deal with.