Running a Private Limited Company in India comes with its own set of responsibilities—regular filings, tax compliances, maintaining statutory registers, and more. But what happens when the business no longer operates or is not generating any revenue? In such cases, it may be beneficial to officially strike off the Pvt Ltd company from the records of the Ministry of Corporate Affairs (MCA). This process helps business owners avoid unnecessary compliance and late fees and ensures closure in a legal and orderly manner.
What Does It Mean to Strike Off a Pvt Ltd Company?
Striking off a company means legally removing its name from the official Register of Companies maintained by the Registrar of Companies (ROC). Once the company is struck off, it ceases to exist and is no longer recognized as a legal entity. This process is governed by Section 248 of the Companies Act, 2013.
If you no longer wish to continue your business operations, opting to strike off a Pvt Ltd company can be a practical solution. However, there are specific conditions and procedures that must be followed to ensure a smooth and compliant exit. This is where trusted professionals like ebizfilling can simplify the process and ensure all legal formalities are correctly handled.
When Can You Strike Off a Company?
A company can apply for strike-off if:
It has not commenced any business since incorporation.
It has not carried out any business or operations in the last two financial years.
It has no outstanding liabilities.
It is not under inspection, investigation, or facing any legal proceedings.
Also, all regulatory filings must be up to date before applying for strike-off.
How to Strike Off a Private Limited Company: Step-by-Step Process
Here’s a brief overview of the steps involved:
Board Resolution
The company’s board of directors must pass a resolution approving the closure.Shareholders’ Approval
The shareholders must approve the strike-off by passing a special resolution.Clear All Liabilities
The company must settle all dues including taxes, employee payments, and creditor obligations.Close Bank Accounts
All bank accounts in the company’s name must be officially closed.File Form STK-2
The application for strike-off must be submitted using Form STK-2 along with:Copy of board and shareholder resolutions
Affidavit and indemnity bond by directors
Statement of accounts (certified by a CA)
PAN card and other KYC documents of directors
ROC Review and Strike-Off Notice
Once satisfied, the ROC will publish a notice in the official gazette, and after 30 days, the company name will be removed from the register.
Why Professional Help Matters
Though the process may seem straightforward, even minor errors can lead to delays or rejections. That's why partnering with professionals like ebizfilling can ensure that every step is taken care of—from document preparation to final approval—saving you time and ensuring peace of mind.
Benefits of Striking Off a Dormant Company
Avoid future penalties and compliance burdens.
Officially end your responsibilities as a director or shareholder.
Clear your legal record for future business ventures.
Cost-effective compared to maintaining a non-functional company.
Conclusion
Striking off your company is a responsible and clean way to close a business that’s no longer operational. Instead of letting it accumulate penalties or fall into non-compliance, a proper closure ensures legal safety and financial clarity.
