Business Registrations & Compliance#089

Understanding Company strike-off / voluntary closure — Form STK-2

Close your company voluntarily via Form STK-2 when you want to dissolve it without an insolvency process.

At a glance

Jurisdiction

Central — Registrar of Companies (ROC), Ministry of Corporate Affairs; applicable across India under Section 248–252 of the Companies Act, 2013 read with Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016

Who applies

Directors or promoters of a dormant or defunct company that has not carried on any business or operation for a period of 2 or more immediately preceding financial years and has no outstanding liabilities

Typical time

3–6 months from submission of Form STK-2 to issuance of final notice of strike-off in the Official Gazette

Fee

₹10,000 application fee for Form STK-2. No refund if application is rejected or withdrawn.

Who should use this process

  • The company must not have carried on any business or operations for 2 or more consecutive financial years immediately preceding the application
  • The company must have no outstanding liabilities — no pending tax demands, no pending litigation, no unpaid creditors, no employee dues
  • The company must not have any pending statutory returns (i.e., all due MCA forms, tax returns, and other filings must be current or compounded)
  • All directors must sign the form and provide their consent to the strike-off
  • The company must close all bank accounts before filing STK-2 and submit bank closure letters

Who does NOT need to apply

  • Listed companies cannot use the STK-2 route; they must follow SEBI's voluntary delisting and then winding-up procedures
  • Section 8 companies (not-for-profit) cannot be struck off via STK-2 without prior approval of the relevant authority
  • Companies in respect of which any investigation, inspection, or inquiry is pending or ordered cannot apply for strike-off
  • Companies that have outstanding NCLT proceedings or insolvency proceedings (under IBC, 2016) are ineligible
  • Companies that have pending income tax assessments or arrears of taxes are ineligible

Documents required

#DocumentType neededPurpose
1Form STK-2 (Application for Strike-off)Download / PrintPrescribed form under Companies (Removal of Names) Rules, 2016; signed by all directors with DSC and certified by a practising CA/CS/CMA
2Indemnity bond from each director (duly notarised)Notarised CopyEach director indemnifies the government against any future liability or claim arising from the dissolved company
3Affidavit from each director (duly notarised) — Form STK-3Notarised CopySworn declaration by each director confirming that the company has no liabilities, no pending court cases, and has not conducted any business in the preceding 2 years
4Statement of Accounts not older than 30 days from the date of application (certified by a CA)OriginalShows NIL assets and liabilities (or minimal residual balances); confirms the financial position of the company at the time of strike-off application
5Bank account closure certificate or proof of nil bank balanceOriginalConfirms that all bank accounts of the company have been closed; mandatory before filing STK-2
6Consent of shareholders — Special Resolution or majority consent(optional)Recommended and in some cases required; protects directors from future claims by dissenting shareholdersOriginalShareholders' approval for the voluntary strike-off; a Special Resolution passed at an EGM or consent signed by shareholders holding 75% or more of the paid-up capital
7DSC of each directorSoft copy (PDF)Required for digital signing of Form STK-2 by each director on the MCA portal
8Certification of Form STK-2 by practising CA / CS / CMAOriginalA practising professional must certify Form STK-2 attesting that the company has no liabilities and meets eligibility criteria

Original documents: Carry originals only for in-person visits — do not hand them over permanently unless explicitly required.

Step-by-step guide

  1. 1

    Assess eligibility and clear all outstanding dues

    Both

    Verify that the company has not conducted any business in the last 2 or more consecutive financial years. Clear all outstanding statutory dues: file any pending MCA forms (AOC-4, MGT-7), pay pending income tax returns, GST returns, PT, and EPF. Close all bank accounts and obtain bank closure certificates. Resolve any pending litigation or employee claims.

    1–3 months
  2. 2

    Obtain shareholders' consent

    Offline

    Call an Extraordinary General Meeting (EGM) or obtain consent in writing from shareholders holding 75% or more of the paid-up share capital. Pass a Special Resolution or obtain written consent authorizing the strike-off application.

    15–30 days
  3. 3

    Prepare Statement of Accounts

    Offline

    Prepare a Statement of Accounts as of a date not older than 30 days from the date of filing STK-2. The Statement must show NIL or near-NIL assets and liabilities. Get it certified by a practising Chartered Accountant.

    5–10 days
  4. 4

    Prepare and execute indemnity bonds and affidavits

    Offline

    Each director must execute a notarised Indemnity Bond and a notarised Affidavit (Form STK-3) on non-judicial stamp paper of appropriate value (varies by state). These confirm that the company has no liabilities and the directors accept responsibility for any future claims.

    5–7 days
  5. 5

    Fill and submit Form STK-2 on MCA portal

    Online

    Log in to the MCA21 v3 portal. Navigate to E-Filing > Company Forms Filing > STK-2. Fill Form STK-2 with details of the company (CIN, name, registered office), directors, reason for closure (dormancy), and confirmation of nil liabilities. Attach all required documents. Have the form digitally signed by all directors and certified by a practising CA/CS/CMA.

    2–3 dayshttps://www.mca.gov.in/mcafoportal/showlogin.do
  6. 6

    Pay ₹10,000 application fee

    Online

    Pay the ₹10,000 strike-off application fee via the MCA portal payment gateway. This fee is non-refundable.

    Same day
  7. 7

    ROC public notice and objection period

    Offline

    After receiving the STK-2 application, the ROC issues a public notice in the Official Gazette and on the MCA website giving a 30-day window for any stakeholder (creditors, regulatory bodies, other parties) to raise objections. If no objections are received, the ROC proceeds with strike-off.

    30–60 daysRegistrar of Companies (ROC)
  8. 8

    Strike-off notice in Official Gazette — company dissolved

    Offline

    After the objection period, if no valid objections are received, the ROC publishes a final strike-off notice in the Official Gazette. The company's name is removed from the Register of Companies and the company stands dissolved.

    1–2 months after objection periodRegistrar of Companies (ROC)

Government officers involved

Registrar of Companies (ROC)

Ministry of Corporate Affairs, Office of the ROC for the relevant state

Steps 7 and 8

Reviews STK-2 application, issues public notice, considers objections, and publishes the final strike-off order in the Official Gazette

Practising CA / CS / CMA

Institute of Chartered Accountants / Company Secretaries / Cost Accountants (private professional)

Steps 3 and 5

Certifies the Statement of Accounts and Form STK-2; attests that the company has no liabilities and meets eligibility for strike-off

Government portals

MCA21 v3 Portal

https://www.mca.gov.in

Filing Form STK-2, paying fee, tracking application status, and downloading the strike-off order

Things to watch out for

All pending MCA filings must be completed before applying

If the company has any pending annual returns (MGT-7/MGT-7A) or financial statement filings (AOC-4) for any financial year, these must be filed (with late fees) before STK-2 is accepted. The MCA system cross-checks filing history. Non-filing leads to outright rejection of STK-2.

Directors remain personally liable for 20 years after strike-off

Even after the company is struck off, the promoters and directors remain personally liable for all liabilities of the dissolved company for a period of 20 years. Creditors can sue the former directors personally. The Indemnity Bond makes this liability explicit.

Income Tax and GST clearance is critical

The ROC communicates with the Income Tax Department and GST Authority regarding the strike-off application. If there are pending income tax assessments, refund claims, or GST dues, these departments may object, blocking the strike-off. Ensure all tax filings are current and no demands are outstanding before applying.

Bank accounts must be closed before filing STK-2

All bank accounts of the company must be closed and bank closure certificates obtained before filing STK-2. An active bank account with any balance is a liability and disqualifies the company from the strike-off route.

STK-2 is only for dormant companies — not for companies with losses or insolvency

STK-2 is available only to companies that are genuinely dormant with no business activity and no liabilities. Companies that are insolvent, have unpaid creditors, pending litigation, or employees with outstanding dues must undergo voluntary winding-up or insolvency proceedings under the Insolvency and Bankruptcy Code, 2016 — not STK-2.