Voluntary Strike Off

Voluntary Strike Off

Voluntary Strike Off is a cost-effective and commonly used method to close a company which is no longer carrying on business or has no reasonable prospects of doing so.

Benefits & Process Click here to inquire
Legal Closure
Strike off under Companies Act, 2013
Faster & Low Cost
Compared to winding up process

Voluntary Strike Off

Overview

Oftentimes when promoters wish to stop business or when there is sustained loss or shareholder disputes, a company may opt for Voluntary Strike Off of the Company under Section 248 of the Companies Act, 2013. This allows closure of the company by applying to the Registrar of Companies (ROC) subject to statutory conditions.

Those Reasons are:

  • When the business is at a loss making stage
  • When there is a dispute among subscribers / shareholders

For that purpose, we have the following solutions:

  • Voluntary Strike off of the Company
  • Apply for Dormancy
  • Winding up the company
  • Selling off the company

Voluntary Strike Off is the most popular and cost-effective method of winding up where the subscribers agree and pass a resolution to voluntarily close the business and apply for Strike Off with the respective ROC.

Pre-requisites of Strike Off

  1. The annual filing of the company must have been completed before filing the form STK-2.
  2. At least 3/4th of the shareholders must have agreed to apply for voluntary strike off in a General Meeting via special resolution.
  3. There should be no overdue creditors in the latest financials. If there are, the company must obtain NOC from such creditors.
  4. There must be no ongoing litigation on the company.
  5. There must be no fraudulent activities; due to which the company is being applied for strike off.

Benefits

Why Voluntary Strike Off may be suitable

Low cost

The costs involved in Strike Off of the company is comparatively low than winding up.

Faster Solution

The process of strike off takes lesser time in comparison to winding up.

No further compliances

After strike off there is no requirement of ROC filings and ITR filing for the company (subject to conditions).

Documents Required

Scanned Copy of:

  • Self-attested PAN & AADHAAR of all the Subscribers/Directors
  • CTC Board Resolution & CTC Special Resolution
  • STK - 3 Indemnity Bond
  • STK - 4 Affidavit
  • STK - 8 Latest Financials

FAQs on Voluntary Strike Off

Please reach us at contact@harshdeepnarula.in if you cannot find an answer to your question.

Timelines vary depending on ROC processing and whether objections are raised. Typically it may take a few weeks to a couple of months.

Costs are generally lower than winding up. Exact fee depends on professional charges and any statutory fees. Contact us for a quote.

Upon ROC acceptance and processing, strike off orders will be published; we will notify you when the confirmation is received.

DIN deactivation may require additional steps. We will assess the situation and assist with required formalities.

Disqualification is a material factor and may require legal inputs; please consult our experts.

Annual filings must generally be up to date before applying for strike off; we can help regularize filings where possible.

Need assistance with Voluntary Strike Off?

Our specialists will guide you through board resolutions, STK forms, NOCs and the ROC process — end-to-end.

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