Strike Off Company | Bright Advis

Introduction

Striking off, often referred to as voluntary striking off or closure, is a legal process wherein a company takes proactive measures to wind up its affairs and dissolve its corporate identity. It involves submitting an application to the relevant regulatory authorities, typically the Registrar of Companies (RoC), to officially remove the company from the official register. This process is an alternative to the more intricate and formal process of liquidation.

Why do companies go for striking off:

Implications of not going for Striking Off

The following are implications of not getting your name stricken off

Administrative Burden

The company would still need to manage administrative tasks, such as holding annual general meetings, even if there are no active business operations.

Potential Legal Consequences

The company may face legal consequences for non-compliance with regulatory obligations, which can negatively impact the reputation of the business and its stakeholders.

Continued Compliance Obligations

Failure to strike off a company results in the continuation of statutory compliance obligations, including filing annual returns, financial statements, and other regulatory requirements. This may lead to penalties and legal consequences.

Liability Continuation

The liability of directors and stakeholders may persist as long as the company remains registered. This could potentially expose them to legal actions, especially if the company has outstanding debts or unresolved legal matters. Hence it always best practice to Strike off the company name.

Checklist for Cancellation

Before initiating the striking off process, ensure you have the following documents and items ready:

process

Name Strike-off Process

in 3 Simple Steps

At Bright Advis, we have simplified the entire filing process of Name Cancellation Process into 3 simple steps. This makes your journey smooth, structured and easy.

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Let Bright Advis manage Striking off your Company Name

When you let Bright Advis manage your cancellation of company or LLP name, you not only get comprehensive services mentioned on the side, you also get a friend who advices, guides and helps you grow into a great business.

Why Bright Advis

There are many reasons why clients choose Bright Advis, but from our experience we have listed the four main reason why you should go with us.

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We focus on streamlining and simplifying the complex processes for our clients.

Frequently Asked Questions

How long does the striking off process take?

The timeline varies, but our efficient process aims for a swift resolution. It typically takes a few months from application submission to official dissolution.

Can I strike off my company if there are pending legal disputes or litigation?

It is advisable to resolve any ongoing legal disputes before applying for striking off, as the authorities may scrutinize such matters during the process.

What happens to the company's assets after striking off?

Prior to striking off, the company’s assets should be appropriately distributed or liquidated to settle any remaining obligations. Any residual assets may be transferred to the stakeholders.

Can I revive a company after it has been struck off?

While revival is possible under certain circumstances, it’s a complex process. It’s advisable to seek professional advice if you intend to revive a struck-off company.

Strike Off Company Process – Complete Guide by Bright Advis

If your company has become inactive or has no business operations, it’s essential to legally close it to avoid ongoing compliance burdens and penalties. The most effective way to do this is through a striking off company process as governed under the Companies Act, 2013. At Bright Advis, we help businesses across India file for strike off efficiently, following every legal requirement. This guide will help you understand what is strike off company status and how to proceed with the process.

What is Strike Off Company?

A strike off of company is a business that has been removed from the Register of Companies maintained by the Ministry of Corporate Affairs (MCA). In simple terms, strike off meaning refers to the legal closure of a company that is no longer active or functional. Struck off meaning is essentially the same – it indicates that a company has been officially removed from the register.

When a company is struck off, it legally ceases to exist and is not required to comply with annual filings or other corporate responsibilities. What is strike off company status in India? It means that the business has been officially dissolved and its name removed from the records.

Legal Framework for Strike Off

The strike off under Companies Act 2013 is governed specifically under Sections 248 to 252. The process is supported by the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016.

Voluntarily struck off by applying to the Registrar of Companies (ROC)
Compulsorily struck off by the ROC for non-compliance

The applications are now centrally processed by Centre for Processing Accelerated Corporate Exit (C-PACE) to ensure transparency and speed in the company strike off procedure.

Modes of Strike Off

Voluntary Strike Off

Initiated by the company
Applicable for companies that have not commenced business or have been inactive for two or more years

Compulsory Strike Off

Initiated by the Registrar of Companies (ROC) due to prolonged non-filing or inactivity
No response to MCA notices may lead to removal of name through suo-moto strike off

Eligibility Criteria for Strike Off

It has not commenced business since incorporation
It has not carried on any business for the last two financial years
It has no outstanding liabilities or legal disputes
All statutory filings are completed up to date
The directors and shareholders have given their consent

Strike Off Company Procedure (Voluntary)

The following step-by-step process of strike off of company must be followed for voluntary closure:

Convene Board Meeting
Pass a board resolution to strike off the company. Authorise a director to initiate the process.
Hold Shareholder Meeting
Conduct an Extraordinary General Meeting (EGM). Pass a special resolution with 75% member consent.
Clear Liabilities and Dues
Ensure all debts are cleared. Obtain no objection certificate from lenders or creditors, if needed.
Prepare Required Documents
- Indemnity Bond in Form STK-3
- Affidavit in Form STK-4 by all directors
- Statement of accounts certified by a CA (Form STK-8)
- Copy of Board and Shareholder Resolutions
File E-form STK-2 with ROC
Attach all documents and resolutions. Pay the government filing fee.
ROC Review and Gazette Notification
MCA publishes a public notice in the Official Gazette for objections. If no objections are received, the ROC strikes off the name and issues the final order.

Bright Advis ensures all documentation and procedures are handled accurately to avoid rejection or delays.

Strike Off by Registrar (Compulsory)

In certain cases, the ROC initiates the strike-off due to the company’s prolonged non-compliance:

No financial statements or annual returns filed for two years
Business not commenced within one year of incorporation
Non-response to statutory notices

What does strike off mean in this case? It means the ROC believes the company is inactive and has legally removed it through the company dissolution process.

Consequences of Strike Off

The company ceases to be a legal entity
It cannot enter into new contracts or legal agreements
Bank accounts, PAN, and GST are cancelled
Directors may face disqualification from future directorships
Any pending liabilities remain enforceable against the promoters

Revival of Strike Off Company

File an appeal to National Company Law Tribunal (NCLT) within 20 years
Provide reasons and supporting documents for revival
On approval, the company is restored to the Register of Companies

Common Mistakes to Avoid

Not settling all dues or liabilities before application
Filing incorrect or outdated documents
Ignoring MCA notices
Failing to update statutory registers before filing STK-2

Bright Advis ensures these common errors are avoided through expert assistance.

FAQs

Q1. What does company status strike off mean?
It refers to the legal closure of a company that is no longer operating or required.
Q2. Can the government strike off my company without consent?
Yes, if your company fails to comply with statutory filings or shows no activity, it may be subject to suo-moto strike off.
Q3. What happens to company assets after strike off?
All assets are frozen. Creditors can initiate recovery proceedings even post strike-off.
Q4. Is GST cancellation required before strike off?
Yes, it is advised to surrender GST, PAN, and other licences before applying.
Q5. Can Bright Advis help revive a struck-off company?
Yes, we assist with NCLT filings and revival documentation for company revival.

Strike Off with Bright Advis

Closing a company must be done with care to avoid legal and financial complications. Bright Advis helps you with the strike off of company with:

End-to-End Guidance on Documentation
Filing of STK-2, STK-3, STK-4, STK-8
Assistance with MCA, Registrar of Companies (ROC), and Gazette Notifications
Affordable, Transparent Pricing

Let Bright Advis help you strike off your inactive company—legally, and smoothly.

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