Legally shut down a dormant company and stop compliance costs.
When a private limited company is no longer operational, simply stopping activity is not enough — it must be formally closed to end its compliance obligations and avoid mounting penalties. The most common route is a voluntary strike off under Section 248 by filing Form STK-2 with the MCA. To qualify, the company must have no outstanding liabilities, must have closed its bank accounts, and generally should not have carried on business for the preceding period. The application requires shareholder approval, a statement of accounts, indemnity bonds and affidavits from directors. Once approved, the company's name is removed from the register and it ceases to exist.
Owners of dormant or non-operational private limited companies wanting a clean exit.
Timelines and government fees are indicative and subject to processing by the relevant authority. Approval and its timing are decided by the authority and cannot be guaranteed.
No. All overdue annual filings must be completed before applying for strike off.
Yes. Strike off is the simpler, lower-cost route for dormant companies with no liabilities.
Yes, within a limited period, by appealing to the NCLT if needed.
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