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Preface: This post was originally published in 2019 and has been updated on May 24, 2025, to provide you with the most current and accurate information.
We all know that the Registrar of Companies (ROC) is responsible for registering all the companies in India, in accordance with the Companies Act 2013. However, many individuals are oblivious of the fact that ROC is also responsible for striking off companies. Striking off a company basically means removing its name from the Register of Companies. Once a company has been struck off, its legal existence comes to an end.
In this blog post, we shall understand strike off company meaning, reasons for strike-off of companies, types of company strike-offs, documents required for striking off a company and the procedure through which a company can be struck off by the shareholders.
When a company is struck off, it is officially removed from the register of companies. A struck-off company effectively ceases its existence in its prior legal form. This means it can no longer engage in commercial operations as it once did. Upon this dissolution, the company's remaining assets are claimed by the government, which may use them for settlement of any unresolved liabilities.
If there are shareholders, they may be entitled to a portion of the liquidated value. One of the defining features of such removal is its permanence i.e., once a company is struck off, it cannot be revived. However, it's possible to form a new company using the same name as the dissolved one, allowing operations to recommence under a new legal identity.
The Companies Act 2013 deals with strike off of companies in India. The procedure for company status strike off is outlined in Sections 248 - 252 of the Act, along with the Companies Removal of Names of Companies from the Register of Companies Rules 2016. Strike off of a company can be initiated by ROC or the company itself by filing a voluntary application for it.
A company can be struck off due to various reasons. The primary reasons for strike-off of companies include the following:
One of the primary reasons for striking off of a company is inactivity for an extended period of time. When a company has remained dormant or inactive for an extended period, it may be struck off by the relevant authority since such a company does not contribute actively to the business environment.
Another reason for a company’s strike-off is Fraudulent or unlawful Activities. In order to uphold moral business practices and shield stakeholders from harm, regulatory agencies may take measures to shut down a company if it is discovered to be engaged in fraudulent or unlawful activities.
Maintaining a company's legal existence requires regular filings and fee payments. A company must be struck off in case of failure to pay fees, submit annual returns, or required papers to the regulating body.
Companies that have stopped operating and have no assets or liabilities left may also be struck off since they are essentially dormant organizations that do not have any role in the market.
Companies can be removed from official records through different strike-off methods. Understanding these different methods is essential to truly understand the broader concept of a company being struck off.
Here are two primary ways through which a company may be dissolved formally:
In this method, the company’s directors choose to dissolve the business through a legal request. It applies when a company has ceased all trading activities and is no longer needed.
Upon approval, the business is taken off the register of companies. Once this happens, the company’s legal existence comes to an end. This option is available to all company types, whether they’re private or public companies.
This method is not appropriate for businesses still operating or those experiencing financial trouble. In such cases, alternative mechanisms like liquidation or administration are regarded as more suitable.
In India, the Registrar of Companies may begin the process of striking off a company that is inactive or has stopped operations altogether. This administrative removal is recognized nationwide.
The specific steps pertaining to strike-off of companies may vary by state or territory. Once executed, the company’s name is erased from the official registry. This results in the dissolution of the company.
Any remaining assets are allocated to creditors as directed by the dissolution terms. The former directors may still bear responsibility for unresolved liabilities incurred during the company’s functioning.
To strike off a company, the following documents/details are necessary:
Content of 75% Shareholders
No Objection Certificate from Creditors
AOC-4 and MGT-7 for last 2 Financial Years
ITR for last 3 financial years.
Identity Proof of Company Directors
Residential Proof of Company Directors
MOA and AOA
Details of pending litigations with respect to the Company (if any)
Bank Account Closure Letter
Details of Shareholders
A duly signed Authority Letter and Consent to make an Application, and Affidavits signed by all Directors and Shareholders
The process for submitting the voluntary strike-off application includes the following essential steps:
Board Meeting & Resolution: The first step in the strike-off process is conducting a board meeting between the company directors and passing a resolution for approval of the company's strike-off and authorizing any director to file an application for the strike-off procedure.
Clearance of Liabilities: Secondly, a company that plans to be struck-off must ensure it has taken care of all its responsibilities and should’ve made the necessary arrangements for paying off the creditors.
Consent of Shareholders: At the general meeting of shareholders, a special resolution to strike-off the company must be approved. It is important to note that this resolution needs to be approved by 75% of the company's shareholders.
Filing Form MGT 14: The resolution must be sent in e-form MGT 14 to the ROC within 30 days.
Filing Form STK 2: To start the strike off of the company, an application in e-form STK 2 must be filed to the ROC together with the necessary.
To shut down a business that is dormant, striking it off is a simple yet yet effective legal procedure that helps to avoid ongoing compliance costs as well as regulatory obligations. In essence, strike-off is the process of officially removing the name of a registered or incorporated company from the register of companies. Once this is done, the company ceases to exist as a legal entity and no longer has any legal rights of its own. The Companies Act 2013, along with its associated rules, states the eligibility criteria, the procedure to be followed and the consequences related to the strike-off of a company.
Need help in ensuring business continuity and prevent it from getting struck off by ROC? Connect with Registrationwala’s company registration & post-registration compliance consultants for assistance!
Q1. How to check company strike off date?
A. To check when a company was struck off, you can visit MCA website and search for the company using its Name/CIN. The status and strike-off date will be available in the company master data.
Q2. What happens to directors when a company is struck off?
A. When a company is struck off, its directors are relieved of their duties and responsibilities related to that company. However, they may still bear responsibility for unresolved liabilities incurred when the company was still operating. In case the company was struck off due to non compliance/fraudulent activities, the directors may face penalties. In certain cases, they may also be disqualified from holding directorships in other companies in future.
Q3. What does strike off mean for a company?
A. Strike-off for a company means that its name is removed from the official register of companies maintained by the Registrar of Companies, thereby marking an end to its legal existence.
Q4. Can a struck-off company be revived?
A. No, a struck-off company cannot be revived. However, a new business may be established with the same company name. This is subject to availability as well as approval by the Registrar.
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