Strike Off

Strike off (also called "removal of name") is the process by which a company's name is deleted from the Register of Companies maintained by the Registrar of Companies (ROC), ending the company's existence without a formal winding-up. It is the simpler, cheaper exit route for defunct or inactive companies and is governed by Sections 248 to 252 of the Companies Act, 2013, read with the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016.

Two routes

• Compulsory (by ROC): under Section 248(1), the Registrar may remove a company that has not commenced business within one year of incorporation, or has not carried on business for the two immediately preceding financial years and has not applied for dormant status under Section 455.
• Voluntary (by the company): under Section 248(2), a company that has extinguished all its liabilities may apply after passing a special resolution or obtaining consent of members holding 75% of the paid-up share capital.

Process and forms

A voluntary application is filed in Form STK-2 (fee Rs 10,000) with an indemnity bond (STK-3) and affidavit (STK-4). Since May 2023 these applications are handled centrally by the Centre for Processing Accelerated Corporate Exit (C-PACE). The ROC serves notice in STK-1, publishes a public notice (STK-5/STK-6), and finally strikes the company off through STK-7, on which date the company stands dissolved.

Restoration

A strike-off is reversible. Any person aggrieved by the ROC's order may appeal to the National Company Law Tribunal (NCLT) within three years under Section 252(1). Separately, a company, member, creditor or workman may apply within 20 years under Section 252(3) to restore a company that was in fact carrying on business when its name was removed.