Written by the LawLine legal & compliance editorial teamSources and editorial policy · Independent professional review not recordedVerify current amendments and local requirements before acting.

Quick answer

Company strike off under section 248 may allow an eligible company to apply for removal through STK-2. Review liabilities, accounts, filing history and statutory restrictions first. LawLine connects you to independent professionals for assessment and preparation. Filing is not immediate dissolution, and removal does not automatically erase liabilities or personal exposure.

Also searched as: STK-2 filing · section 248 company closure · voluntary company strike off

Overview

What you need to know about company strike off

Company strike off is removal of a company’s name from the register under the statutory framework, not simply a decision to stop trading. Section 248 of the Companies Act, 2013 provides relevant grounds and a company-initiated route under subsection (2). MCA identifies Form STK-2 as the company’s application for removal. Eligibility must be assessed alongside restrictions, liabilities, filing history and any special regulatory status.

A company with unpaid creditors, unresolved tax matters or unexplained balances should not assume that strike off is a convenient substitute for settling its affairs. The professional needs to inspect the accounts, bank position, assets, liabilities and corporate approvals before recommending a route. Sector-regulated companies may raise additional issues. Other closure or insolvency procedures may be more appropriate where the facts do not support a voluntary strike-off application.

LawLine connects users to independent advocates, CAs and CSs for an eligibility and document review, preparation support and separately scoped follow-up. Filing STK-2 does not itself dissolve the company and does not provide blanket protection to directors or members. The Registrar controls scrutiny and the statutory removal process. A handover should distinguish submitted, under review and finally removed status so that founders do not prematurely abandon their remaining obligations.

Is this for you?

Who needs this and when

Directors of a genuinely inactive company may need a route assessment when there is no plan to resume business. Gather the full financial and filing history rather than only the incorporation certificate. A professional should establish why the statutory grounds apply and what must be completed before any application can responsibly be prepared.

Companies with creditor disputes, litigation, substantial assets or unresolved statutory dues need a more careful closure assessment. Strike off may not be available or appropriate. The service should help directors understand alternatives and unresolved issues, not encourage declarations that conflict with the accounts or promise that liabilities will disappear.

Benefits

What you get with LawLine

A focused starting assessment for company strike off, so you can understand the correct route before paying for a broader package or making commitments based on an assumed approval.
A practical review of your existing records, with missing information identified before drafting. This helps you distinguish evidence that is essential from material that does not answer the authority’s requirements.
A written scope separating professional preparation from official charges, third-party services and later proceedings. You can compare the actual work offered rather than relying on a headline starting price.
Independent professional guidance on the facts you provide, including when another registration, correction or specialist opinion may be needed. The engagement does not replace the decision of a public authority or certifier.
An opportunity to review names, dates, figures, declarations and attachments before authorising submission. You remain involved in the factual statements made in your name or on behalf of your organisation.
A clearer handover of submitted documents, available acknowledgements and outstanding actions. This makes it easier to monitor progress and plan continuing responsibilities without mistaking an application receipt for final approval.

Process

Step-by-step: how it works

1Grounds and restriction assessmentShare the complete background, location, existing records and any deadline. The independent professional checks the proposed route and flags facts that could change eligibility, scope or urgency before preparation begins.
2Financial and filing cleanup reviewOrganise the relevant evidence and resolve inconsistencies in names, dates, addresses and figures. Review draft statements and disclose missing or disputed information instead of asking the professional to infer facts.
3Approvals and STK-2 preparationApprove the final material and the applicable charges before the agreed submission or assessment step. Where an authority or external body raises a query, confirm whether the response falls within the existing scope.
4Registrar process monitoring and final status checkReview the available outcome or acknowledgement, preserve the complete file and record the next action. If further scrutiny, a hearing or continuing compliance is required, obtain a separate plan and quotation where necessary.

Documents required

Clear scans or phone photos are enough to get started.

Certificate of incorporation, CIN and constitutional documents
Director and authorised signatory information
Recent accounts and asset-liability details for professional review
Bank statements and bank closure evidence where relevant
Shareholder and board approvals required for the selected route
Affidavits, indemnities and declarations required by current STK-2 rules
Filing history, tax records and details of pending disputes or regulatory matters

Pricing

Cost breakdown

Item	Amount	What it means
Indicative LawLine professional fee	From ₹6,999	For the agreed initial professional scope, excluding government fees. Confirm deliverables, number of applications or matters, document volume and whether submission assistance is included before accepting the quote.
Government or authority charges	As applicable to the selected route	Professional review and preparation fee only. MCA filing charges, overdue filings, tax work and other closure costs are additional.
Third-party and supporting expenses	Quoted separately where needed	Issuer, certifier, document execution, translation, courier or other outside costs are not automatically part of the starting fee. Ask which items actually apply and request the basis of each proposed charge.
Corrections, queries and later proceedings	Based on separately agreed scope	A disputed fact, incomplete record, substantial resubmission, hearing or additional application can change the work required. Agree the treatment of these events before assuming that every future response is included.
Continuing compliance and applicable taxes	Confirm in the written quotation	Recurring filings, renewals, surveillance, bookkeeping and other post-service work are separate unless expressly included. Ask whether taxes on professional services are additional and retain invoices and official payment receipts.

Professional review and preparation fee only. MCA filing charges, overdue filings, tax work and other closure costs are additional.

Timeline

How long it takes

Grounds and restriction assessment
Planning allowance: one to three working days after complete initial information; urgent matters need individual triage.
Financial and filing cleanup review
Planning allowance: several working days or longer, depending on missing evidence and the amount of drafting or implementation.
Approvals and STK-2 preparation
Preparation depends on record cleanup; the statutory process and Registrar’s decision may take several months.
Registrar process monitoring and final status check
Dependent on the official process, external assessment or remaining actions; no fixed decision date is promised.
Outstanding action and record handover
Arrange after the relevant milestone; continuing obligations follow their own legal or contractual deadlines.

Avoid delays

Common mistakes to avoid

Equating stopped trading with legal dissolution
Concealing unpaid liabilities or pending disputes
Signing closure declarations without reviewing balances
Treating submission acknowledgement as final removal
Ignoring tax and registration closures outside MCA

Next steps

After it’s done: staying compliant

Preserve the application, financial evidence, approvals and final official status records. Review tax and other registrations separately rather than assuming MCA removal closes every account. Retain access to past books and correspondence for future queries or claims.

Nominate someone to monitor official messages and preserve access to the relevant account. Keep a dated record of what was submitted, who authorised it and which follow-up actions remain open. If a new notice, changed business fact or disputed outcome appears, share the complete document promptly. Do not reuse an earlier opinion for a materially different activity, financial period, premises or legal structure without checking whether it still applies.

FAQs

Frequently asked questions

What is STK-2?

MCA identifies STK-2 as the company’s application to the Registrar for removal under section 248(2) and the relevant removal rules. It is not a substitute for the Registrar’s subsequent examination and statutory process.

Can we apply while money is owed?

Unsettled liabilities require careful review and may prevent the proposed route. Do not sign an affidavit or statement that conceals creditors, tax obligations or other balances. The professional must assess the actual position before advising submission.

Can every company use voluntary strike off?

No. Grounds, statutory restrictions, company category and factual circumstances matter. The existence of an online form does not establish eligibility. Provide details of recent activities, disputes, assets and any regulator involved.

Does filing end annual compliance immediately?

Do not assume so. Ask the professional to specify obligations during the pending process and verify final status through official records. An acknowledgement only proves receipt of a filing, not completion of removal.

Does strike off wipe out director liability?

No blanket release should be assumed. Statutory consequences and continuing liabilities require separate analysis. If there are creditor claims, suspected misconduct or restoration concerns, obtain case-specific legal advice before proceeding.

Key takeaways

Start with the actual requirements for company strike off, not a generic package name. The right scope depends on your facts, the relevant jurisdiction and the authority or external body involved.
The displayed starting price is an indicative professional fee, not an all-inclusive statutory amount. Get the government, third-party and recurring components separately identified before deciding whether the engagement meets your needs.
LawLine connects users to independent advocates, CAs and CSs. The professional’s advice and preparation do not guarantee acceptance, certification, a tax benefit or any other outcome controlled by another decision-maker.
Review every factual declaration and keep the final evidence and acknowledgements. A submission, payment receipt or pending status should not be presented as a completed registration, permission or favourable order.
Use the official sources below to check the relevant process, and ask how current requirements apply to your case. Portal instructions and legal rules can change; the stated estimates are planning guidance rather than government service guarantees.

Official sources & government portals

This guide is general information, not legal advice for your situation. Laws and fees change; confirm with an expert before acting.

Need help with company strike off?

Confirm credentials, scope and fees before engaging a professional.

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