Close your company legally — the affordable Strike Off route (Form STK-2, Section 248) for dormant or non-operating companies with a clean nil position, or formal liquidation under the IBC for companies with assets and liabilities. Resolutions, documentation, and C-PACE filing handled end-to-end.
9 mandatory · 1 optional
When a company has served its purpose, closing it down properly matters — an abandoned company keeps accruing filing penalties and can leave its directors disqualified. There are two main legal routes, plus a “pause” option. The affordable, common route is Strike Off under Section 248 for a dormant or non-operating company — often a private limited company that never began trading — with a clean slate; companies that still have assets, debts or creditors instead need a formal liquidation under the Insolvency and Bankruptcy Code, 2016. Our CA-assisted service assesses your position and handles the whole exit end to end.
This is the question that confuses most people. The honest answer depends on whether your company has anything left to settle:
| Strike Off (STK-2) | Liquidation (IBC s.59) | |
|---|---|---|
| Best for | Small / dormant companies with a clean nil position | Companies with assets, liabilities or creditors to settle |
| Cost | Affordable — ~₹10,000 government fee + professional fee | Quote-based (Insolvency Professional led) |
| Time | ~3–4 months | Longer, structured process |
| Run by | Directors + CA, filed at C-PACE | An Insolvency Professional as liquidator |
In short: a clean, dormant company → Strike Off; a company with assets or liabilities to wind down → Liquidation. We tell you which applies before you spend anything.
Voluntary strike off is made under Section 248(2) of the Companies Act, 2013 read with the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016. Since 17 April 2023, all strike-off applications are processed centrally by C-PACE (the Centre for Processing Accelerated Corporate Exit), which has made the route faster and more uniform across India.
Some companies are barred from the strike-off route and must take another path:
There is also a 3-month bar (Rule 4): you cannot apply if, in the previous three months, the company changed its name, shifted its registered office to another state, or disposed of property or rights beyond ordinary trading.
End to end, a clean strike off typically takes around 3–4 months. Bringing any overdue annual filings up to date first is usually necessary — our Company Annual Compliance service can regularise pending AOC-4 / MGT-7 before the application.
A common misconception. Under Section 248(7), even after the company's name is struck off, the liability of every director, officer and member continues as if the company had not been dissolved — pre-existing debts and obligations survive. A struck-off company can also be restored by the NCLT under Section 252 (within up to 20 years), for example if a creditor or the ROC objects. This is exactly why a proper, clean closure — rather than simply abandoning the company — matters.
If your company still has assets to distribute, liabilities or creditors to settle, or ongoing disputes, strike off is not available — you need a formal liquidation.
Because liquidation is Insolvency-Professional-led and depends entirely on the company's affairs, it is quote-based — contact us for an assessment and a tailored quote.
If you want to pause rather than close — to hold an asset, protect a brand, or keep a company ready for a future project — you can apply for dormant status under Section 455 (Form MSC-1, a special resolution and a ₹5,000 fee). A dormant company has a much-reduced compliance burden but is not exempt from filing altogether — it still files an annual return in Form MSC-3 — and can be reactivated later via Form MSC-4.
A lot of online guidance on company closure is years out of date. The current strike-off process uses Forms STK-2, STK-3 and STK-4 and is filed at C-PACE; voluntary winding up is no longer a Companies Act procedure with old gazette forms — it has been superseded by the Insolvency and Bankruptcy Code, 2016. We file under the current law, so your closure actually goes through the first time.
Simple, transparent pricing — pick the plan that fits.
There are three options. Strike off (Form STK-2 under Section 248) removes a dormant or non-operating company with a clean nil position — the affordable, common route. Liquidation under the Insolvency and Bankruptcy Code, 2016 is the formal route for a company that still has assets, liabilities or creditors. And dormant status (Section 455) lets you pause a company instead of closing it. We help you choose the right one.
It depends on whether anything is left to settle. If your company has a clean nil position — no assets, no liabilities, accounts closed — it qualifies for strike off (STK-2), which is faster and cheaper. If it still has assets to distribute or debts/creditors to deal with, you need a formal liquidation under IBC Section 59, run by an Insolvency Professional. We assess your books and tell you which route is open to you.
STK-2 is the voluntary strike-off application under Section 248(2), filed at C-PACE with a ₹10,000 government fee. A company can use it if it has not commenced business within a year of incorporation, or has not carried on business for the two preceding financial years and not sought dormant status — with all liabilities extinguished, a nil position, and bank accounts closed.
Under Rule 3, strike off is barred for listed companies (and those delisted for non-compliance), companies under inspection, investigation or prosecution, companies with charges pending satisfaction, companies that accepted public deposits still outstanding, Section 8 (non-profit) companies, and vanishing companies. A 3-month bar also applies if the company recently changed its name, shifted its registered office across states, or disposed of property.
The main ones are a special resolution / 75% member consent, the STK-3 indemnity bond (signed by all directors and notarised), the STK-4 affidavit, a CA-certified statement of accounts showing a nil position (dated within 30 days of filing), proof that bank accounts are closed, and director KYC/PAN. We draft the resolutions, bond and affidavits for you.
Our professional fee for a voluntary strike off is a flat ₹4,999, plus the ₹10,000 government STK-2 fee (at actuals). A clean strike off typically takes around 3–4 months end to end, including the 30-day public-notice objection window. Formal liquidation, by contrast, is quote-based as it is Insolvency-Professional-led.
No. Under Section 248(7), the liability of every director, officer and member continues even after the company is struck off, as if it had not been dissolved — pre-existing debts and obligations survive. A struck-off company can also be restored by the NCLT under Section 252 for up to 20 years. This is why a proper, clean closure beats simply abandoning the company.
Usually yes — overdue annual filings should be brought up to date before a strike off so the application is accepted. We review your pending AOC-4 / MGT-7 and regularise them as part of the process; our Company Annual Compliance service handles the catch-up filings where needed.
No — and a lot of older guidance still gets this wrong. Voluntary liquidation moved to the Insolvency and Bankruptcy Code, 2016 (Section 59); the old Companies Act voluntary winding-up provisions and their gazette forms are obsolete. Today a solvent company is wound up voluntarily through an Insolvency Professional under the IBC. We file under the current framework.
Yes — apply for dormant status under Section 455 using Form MSC-1 (a special resolution and a ₹5,000 fee). It suits a company being kept for a future project or to hold an asset. A dormant company has a much lighter compliance load but is not exempt from filing — it still files an annual return (Form MSC-3) — and can be reactivated later via Form MSC-4.
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