{"id":318,"date":"2025-08-15T07:17:53","date_gmt":"2025-08-15T07:17:53","guid":{"rendered":"https:\/\/www.mylegalbusiness.com\/blog\/?p=318"},"modified":"2025-08-15T07:25:12","modified_gmt":"2025-08-15T07:25:12","slug":"closure-of-private-limited-company-via-strike-off","status":"publish","type":"post","link":"https:\/\/www.mylegalbusiness.com\/blog\/closure-of-private-limited-company-via-strike-off\/","title":{"rendered":"Closure of Private Limited Company via Strike Off"},"content":{"rendered":"\n<p>When a private limited company becomes inactive or no longer wishes to continue business operations, opting for <strong>Closure of Private Limited Company<\/strong> is a logical and legal step. Among the various modes available, closure via strike off under Section 248 of the Companies Act, 2013 is the most time-saving and cost-effective.<\/p>\n\n\n\n<p>This blog will guide you through the complete process, eligibility criteria, documentation, and FAQs related to the <strong>Closure of Private Limited Company<\/strong> through the strike-off method.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_76 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/closure-of-private-limited-company-via-strike-off\/#What_is_Strike_Off_under_the_Companies_Act_2013\" >What is Strike Off under the Companies Act, 2013?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/closure-of-private-limited-company-via-strike-off\/#When_to_Choose_Strike_Off_Over_Other_Closure_Methods\" >When to Choose Strike Off Over Other Closure Methods?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/closure-of-private-limited-company-via-strike-off\/#Eligibility_for_Strike_Off\" >Eligibility for Strike Off<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/closure-of-private-limited-company-via-strike-off\/#Step-by-Step_Procedure_for_Closure_of_Private_Limited_Company_via_Strike_Off\" >Step-by-Step Procedure for Closure of Private Limited Company via Strike Off<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/closure-of-private-limited-company-via-strike-off\/#Post_Strike_Off_What_Happens\" >Post Strike Off: What Happens?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/closure-of-private-limited-company-via-strike-off\/#Advantages_of_Strike_Off_Process\" >Advantages of Strike Off Process<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/closure-of-private-limited-company-via-strike-off\/#Common_Mistakes_to_Avoid\" >Common Mistakes to Avoid<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/closure-of-private-limited-company-via-strike-off\/#Timeline_for_Strike_Off\" >Timeline for Strike Off<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/closure-of-private-limited-company-via-strike-off\/#Cost_of_Closure_of_Private_Limited_Company\" >Cost of Closure of Private Limited Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/closure-of-private-limited-company-via-strike-off\/#Documents_Checklist\" >Documents Checklist<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/closure-of-private-limited-company-via-strike-off\/#Frequently_Asked_Questions_FAQs\" >Frequently Asked Questions (FAQs)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/closure-of-private-limited-company-via-strike-off\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Strike_Off_under_the_Companies_Act_2013\"><\/span><strong>What is Strike Off under the Companies Act, 2013?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Strike off refers to removing the company\u2019s name from the official Register of Companies maintained by the Registrar of Companies (ROC). Once a company is struck off, it ceases to exist legally. The procedure for <strong>Closure of Private Limited Company<\/strong> via strike off is governed by Section 248(2) of the Companies Act, 2013 and Rule 4 of the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"When_to_Choose_Strike_Off_Over_Other_Closure_Methods\"><\/span><strong>When to Choose Strike Off Over Other Closure Methods?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The <strong>Closure of Private Limited Company<\/strong> via strike off is ideal when:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The company is non-operational or dormant for two or more years.<\/li>\n\n\n\n<li>There are no liabilities or pending litigation.<\/li>\n\n\n\n<li>Directors\/shareholders wish to voluntarily close the business.<\/li>\n\n\n\n<li>The company has not commenced operations since incorporation.<\/li>\n<\/ul>\n\n\n\n<p>Other methods like liquidation or winding-up involve court intervention and longer timelines. In contrast, strike off is simpler and completed online via the Ministry of Corporate Affairs (MCA) portal.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_for_Strike_Off\"><\/span><strong>Eligibility for Strike Off<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Before initiating the <strong>Closure of Private Limited Company<\/strong> via strike off, ensure that your company meets the following conditions:<\/p>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li>No business activities conducted in the last two financial years.<\/li>\n\n\n\n<li>No pending dues or liabilities to banks, creditors, or authorities.<\/li>\n\n\n\n<li>No application pending for compromise or arrangement.<\/li>\n\n\n\n<li>Not de-listed due to non-compliance with any law.<\/li>\n\n\n\n<li>No shares issued beyond the subscribed capital.<\/li>\n<\/ol>\n\n\n\n<p>If these conditions are not met, you must explore alternate closure methods like voluntary liquidation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step-by-Step_Procedure_for_Closure_of_Private_Limited_Company_via_Strike_Off\"><\/span><strong>Step-by-Step Procedure for Closure of Private Limited Company via Strike Off<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The entire <strong>procedure for Closure of Private Limited Companyvia strike off<\/strong> is explained below:<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Step 1: Hold Board Meeting and Pass Resolution<\/strong><\/p>\n\n\n\n<p><strong>Convene a Board Meeting to:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Approve the proposal for <strong>Closure of Private Limited Company<\/strong> via strike off.<\/li>\n\n\n\n<li>Authorize a director to proceed with filing the application.<\/li>\n<\/ul>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Step 2: Clear Outstanding Liabilities<\/strong><\/p>\n\n\n\n<p><strong>Ensure<\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>All debts and statutory dues are cleared.<\/li>\n\n\n\n<li>Bank accounts are closed, and NOC is obtained from financial institutions.<\/li>\n<\/ul>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Step 3: Conduct General Meeting<\/strong><\/p>\n\n\n\n<p>Hold an Extra-Ordinary General Meeting (EGM) to pass a special resolution with at least 75% shareholder approval.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Step 4: File e-Form MGT-14 (if applicable)<\/strong><\/p>\n\n\n\n<p>If a special resolution is passed, file MGT-14 within 30 days of the EGM.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Step 5: Prepare Documents for Strike Off<\/strong><\/p>\n\n\n\n<p>Documents required for <strong>Closure of Private Limited Company<\/strong> via strike off:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Board and Special Resolution copies<\/li>\n\n\n\n<li>Statement of Accounts certified by CA<\/li>\n\n\n\n<li>Indemnity Bond (STK-3), notarized<\/li>\n\n\n\n<li>Affidavit by directors (STK-4)<\/li>\n\n\n\n<li>Consent of directors<\/li>\n\n\n\n<li>PAN, Aadhaar, DIN of directors<\/li>\n\n\n\n<li>Bank Closure Letter\/NOC<\/li>\n<\/ul>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Step 6: File Form STK-2<\/strong><\/p>\n\n\n\n<p>Submit e-Form STK-2 with the ROC along with \u20b910,000 fee and necessary attachments.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Step 7: ROC Review and Strike Off<\/strong><\/p>\n\n\n\n<p><strong>The ROC will:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Publish a notice in the Official Gazette inviting objections (30 days).<\/li>\n\n\n\n<li>If no objections arise, strike off the company name and issue a dissolution notice.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Post_Strike_Off_What_Happens\"><\/span><strong>Post Strike Off: What Happens?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>After the <strong>Closure of Private Limited Company<\/strong> is completed:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The company\u2019s name is removed from the Register of Companies.<\/li>\n\n\n\n<li>Certificate of Incorporation is cancelled.<\/li>\n\n\n\n<li>No business activity can be conducted post-closure.<\/li>\n\n\n\n<li>Directors remain liable if any fraud or hidden liabilities arise.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Advantages_of_Strike_Off_Process\"><\/span><strong>Advantages of Strike Off Process<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Opting for <strong>Closure of Private Limited Company<\/strong> via strike off offers the following benefits:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Cost-effective and faster than other closure methods<\/li>\n\n\n\n<li>No court involvement<\/li>\n\n\n\n<li>Can be completed in 3-6 months<\/li>\n\n\n\n<li>Entirely online through MCA portal<\/li>\n\n\n\n<li>Fewer legal hurdles<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Common_Mistakes_to_Avoid\"><\/span><strong>Common Mistakes to Avoid<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>For smooth <strong>Closure of Private Limited Company<\/strong>, avoid:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Leaving tax or statutory dues unpaid<\/li>\n\n\n\n<li>Submitting outdated or unaudited financials<\/li>\n\n\n\n<li>Filing incomplete or incorrect documentation<\/li>\n\n\n\n<li>Not obtaining proper shareholder approval<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Timeline_for_Strike_Off\"><\/span><strong>Timeline for Strike Off<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The average time required for <strong>Closure of <a href=\"https:\/\/www.mylegalbusiness.com\/private-limited-company-registration.php\">Private Limited Company<\/a><\/strong> via strike off is around 3 to 4 months, depending on:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Document accuracy<\/li>\n\n\n\n<li>MCA workload<\/li>\n\n\n\n<li>Objections (if any)<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cost_of_Closure_of_Private_Limited_Company\"><\/span><strong>Cost of Closure of Private Limited Company<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The government filing fee for Form STK-2 is \u20b910,000. Additional professional fees for CA certification, digital signature, and documentation may apply. On average, the total cost ranges from \u20b925,000 to \u20b930,000.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_Checklist\"><\/span><strong>Documents Checklist<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><td><strong>Document<\/strong><\/td><td><strong>Description<\/strong><\/td><\/tr><\/thead><tbody><tr><td>Board Resolution<\/td><td>For closure authorization<\/td><\/tr><tr><td>Special Resolution<\/td><td>Passed by shareholders<\/td><\/tr><tr><td>STK-2<\/td><td>Application for strike off<\/td><\/tr><tr><td>STK-3<\/td><td>Indemnity Bond<\/td><\/tr><tr><td>STK-4<\/td><td>Affidavit by directors<\/td><\/tr><tr><td>Statement of Accounts<\/td><td>Not older than 15 days, CA certified<\/td><\/tr><tr><td>PAN, Aadhaar, DIN<\/td><td>Of all directors<\/td><\/tr><tr><td>NOC<\/td><td>From concerned authorities (if applicable)<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions_FAQs\"><\/span><strong>Frequently Asked Questions (FAQs)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>1. Can a company with liabilities apply for strike off?<\/strong><\/p>\n\n\n\n<p>No. For <strong>Closure of Private Limited Company<\/strong> via strike off, all liabilities must be cleared beforehand.<\/p>\n\n\n\n<p><strong>2. Is Director\u2019s KYC required for strike off?<\/strong><\/p>\n\n\n\n<p>Yes- for the purpose of filing Form STK\u20112 (Strike Off), only one director with an &#8220;active DIN&#8221; is required to digitally sign and file the form on the MCA portal.<\/p>\n\n\n\n<p><strong>3. Can ROC reject the STK-2 application?<\/strong><\/p>\n\n\n\n<p>Yes. If the documents are incomplete or objections are raised, ROC can reject or put the application on hold.<\/p>\n\n\n\n<p><strong>4. Is the strike off application reversible?<\/strong><\/p>\n\n\n\n<p>Once approved and notified in the Gazette, the company cannot be revived unless an appeal is made to the NCLT within 20 years.<\/p>\n\n\n\n<p><strong>5. Does the company need to file Income Tax returns before strike off?<\/strong><\/p>\n\n\n\n<p>Yes, the company must complete all pending Income Tax and ROC filings up to the financial year in which it actually carried out business operations.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>The Closure of Private Limited Company<\/strong> <strong>via strike off <\/strong>is a streamlined and practical method for shutting down dormant companies. By adhering to MCA regulations, submitting accurate documents, and following the correct procedure, you can avoid future liabilities and complete the process with ease.<\/p>\n\n\n\n<p>Need expert assistance for filing STK-2 or document preparation. Contact our professionals to start the Closure of Private Limited Company process today.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"has-pale-cyan-blue-background-color has-background\"><strong>ALSO READ<\/strong><\/p>\n<\/blockquote>\n\n\n\n<p><a href=\"https:\/\/www.mylegalbusiness.com\/blog\/important-of-roc-filings-calendar-and-due-dates\/\"><strong>Importance of ROC Filings Calendar and Due Dates<\/strong><\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.mylegalbusiness.com\/blog\/importance-of-director-kyc-for-company-compliance\/\"><strong>Importance of Director KYC For Company Compliance<\/strong><\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.mylegalbusiness.com\/blog\/section-8-company-registration-process-step-by-step\/\"><strong>Section 8 Company Registration Process Step By Step<\/strong><\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.mylegalbusiness.com\/blog\/how-to-start-an-ngo-for-animals-in-india\/\"><strong>How to Start an NGO For Animals in India<\/strong><\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.mylegalbusiness.com\/section-8-company-registration-in-bangalore.php\"><strong>Section 8 Company Registration in Bangalore<\/strong><\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.mylegalbusiness.com\/section-8-company-registration-in-uttar-pradesh.php\"><strong>Section 8 Company Registration in Uttar Pradesh<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>When a private limited company becomes inactive or no longer wishes to continue business operations, opting for Closure of Private Limited Company [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":320,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[],"class_list":["post-318","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-private-limited-company"],"yoast_head":"<!-- This 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