Closing of Company

Passionate – Dedicated – Professional

Start, Register, Succeed
In Just 3 Easy Steps

From consultation to government filing, we handle the entire registration process—fast, compliant, and tailored to your business needs.

Step – 1

Consultation & Payment

Connect with our experts to discuss your needs. Once confirmed, pay securely online to begin.

Step – 2

Documentation & Filing

We’ll verify your documents, prepare the forms, and ensure accurate, timely filing with the authorities.

Step – 3

Approval & Handover

Once approved, receive your official documents and certificates via your preferred delivery method.

Don’t Stress Over Company Closure – Let Our Experts Handle It

Resolve your Closing of Company easily with Us

Send Query – Provide Documents – Company Closed

File Company Closure with Confidence, Backed by CA Experts

Purpose
Strategic Outlook

Purpose

Our Company Closure Service is designed to help businesses, startups, and entrepreneurs legally wind up their companies in a smooth and hassle-free manner. We handle the entire process, including documentation, filing with authorities, and compliance requirements, ensuring timely closure while minimizing legal risks and penalties.

Strategic Outlook

A Strategic Outlook on Company Closure focuses on assessing the financial and legal position of the business, identifying the most suitable closure route, and planning a compliant exit strategy. It ensures all statutory obligations are fulfilled, liabilities are settled, and documentation is accurately filed. Backed by expert CAs.

Call us for inquiry : Monday to Saturday: 9 am – 7 pm

+91 94321 55688

Enquire Now!

+91 94321 5568

Discover everything about Closing of Company

Overview

Company Closure

Closing a company is the formal legal process of dissolving a business entity and removing its name from the Registrar of Companies (ROC) records to end all statutory liabilities.

⚖️
Legal Framework

Governed primarily by the Companies Act, 2013 (Section 248 for Strike-off) and the Insolvency and Bankruptcy Code (IBC) for liquidation.

📉
Why Close?

Initiated when the company has no active business, is consistently loss-making, or the promoters no longer wish to maintain compliance for a dormant entity.

📝

The Compliance Stop-Loss

Proper closure is essential to stop the accumulation of penalties for non-filing. An active company that doesn’t file returns can attract daily fines and lead to the disqualification of its directors.

Types

Types of Company Closure

Choosing the right closure method depends on the company’s financial health, the presence of creditors, and the duration of inactivity.

The Fast Track Exit

Strike Off (STK-2)

Designed for inactive companies with zero assets and zero liabilities. The most efficient way to remove a name from the ROC.

Solvent Exit

Voluntary Liquidation

For companies that are solvent but wish to settle all liabilities and distribute remaining assets to shareholders before closing.

Judicial Order

Compulsory Winding Up

Ordered by the NCLT (Tribunal) due to insolvency, failure to file returns for 5 years, or acting against national interests.

Dormancy Transition

Dormant → Strike Off

Entities that obtained Dormant Status for future projects but eventually decide to close without commencing operations.

⚖️

The Liability Warning

Even after a Strike Off, the liability of every director and member continues and may be enforced as if the company had not been dissolved. Ensure all Income Tax and GST clearances are obtained to avoid personal litigation later.

Eligibility

Eligibility Checklist

Before filing Form STK-2, the entity must meet these statutory prerequisites under the Companies Act, 2013.

1
Zero Inactivity

The company must not have commenced business or been inactive for the last 1–2 years (depending on the specific strike-off route).

2
No Liabilities

All outstanding debts and liabilities must be settled. Proof of bank account closure is a mandatory filing requirement.

3
Filing Up-to-Date

All Annual Returns (MGT-7/AOC-4) and Income Tax Returns (ITR) must be filed up to the date of inactivity.

⚖️

Legal Restrictions

The company must not have any ongoing legal proceedings or investigations by regulatory bodies. Furthermore, you must obtain a Special Resolution (75% shareholder consent) before applying for Strike Off.

Required Documents

Required Document Kit

The Registrar of Companies (ROC) requires these specific digital and physical records to verify that the entity has no remaining liabilities or business interests.

Corporate Identity

✔ Company PAN Card
✔ Certificate of Incorporation (COI)
✔ Certified Board Resolution
✔ Shareholder Consent (75% Majority)

Financial Clearance

✔ CA-Certified Statement of Accounts
✔ Latest Income Tax Return (ITR)
✔ Bank Account Closure Proof
✔ No Objection from Creditors

Director Declarations

✔ Affidavit (Form STK-4): Signified by all directors.
✔ Indemnity Bond (Form STK-3): Executed on stamp paper.
✔ Digital Signature (DSC)

📝

The “Date of Application” Rule

The Statement of Accounts must be prepared as of a date not more than 30 days before the date of filing the application. Furthermore, the Indemnity Bond must be notarized and executed on non-judicial stamp paper as per the respective state’s Stamp Act.

Procedure

Closure Procedure

The “Fast Track Exit” via Form STK-2 is a systematic legal withdrawal that ensures all stakeholders are notified before the entity is struck off.

1
Board Initiation

Pass a Board Resolution for closure and settle all outstanding liabilities. Close all bank accounts and obtain bank certificates.

2
Filing Readiness

Prepare CA-certified Statement of Accounts, Indemnity Bonds, and Affidavits from all directors.

3
Form STK-2 Filing

File the Strike Off application with the ROC. The registrar will then issue a Public Notice to invite objections.

4
Final Strike Off

If no objections are received, the ROC publishes the final notice of dissolution in the Official Gazette.

📝

The Public Notice Period

After filing STK-2, the ROC will place the name of the company on the MCA website for 30 days to allow any third party or regulatory authority (like Income Tax) to raise objections. If no objections are filed within this period, the company’s status changes to “Struck Off.”

Duration

Expected Duration

The time required to remove a company’s name from the Register of Companies depends heavily on its financial complexity and the chosen exit route.

⚡
Strike Off (STK-2)

The most efficient route for inactive entities. Once filed, the ROC typically processes the removal within 2 to 3 months.

Fastest Exit

⚖️
Voluntary Liquidation

A detailed legal process involving liquidator appointment and creditor settlements. Usually spans 6 to 12 months.

High Compliance

📝

The ROC Approval Variable

The actual duration is often impacted by the accuracy of documentation and the speed of the Income Tax department in providing NOC (No Objection) to the ROC. Any discrepancy in past annual filings will pause the clock until the defaults are cleared.

Fees

Government & Filing Fees

Closing a company involves specific statutory payments to the MCA and professional costs for legal certification of the closure documents.

🏛️

ROC Filing Fee

The standard government fee for filing Form STK-2 for a Fast Track Exit.

Approx. ₹10,000

💼

Professional Fees

Charges for CA/CS to certify the Statement of Accounts and file the application.

Service Based

⚠️

Pending Compliance

Late fees and penalties for AOC-4 or MGT-7 if filings are overdue.

Variable Penalties

📊

The “Active Status” Requirement

A company cannot file for Strike Off if it is not up-to-date with its Annual Filings. If your company has been in default, you must first file all overdue returns with the applicable **Late Fees** before the ROC accepts the STK-2 application.

Benefits

Why Close? Strategic Benefits

Formal dissolution is the only way to permanently end statutory liability and protect the directors’ professional standing.

📉
Cost Elimination

Immediately stops recurring audit fees, professional charges, and annual filing costs for an inactive business.

🛡️
Penalty Protection

Prevents the accumulation of daily late fees (up to ₹100/day per form) and heavy compounding penalties for non-filing.

⚖️
Director Immunity

A “Clean Exit” ensures directors are not disqualified (DIN deactivation), protecting their ability to lead other future ventures.

🏁

Financial & Legal De-risking

Striking off a company provides the ultimate finality. It removes the burden of monitoring compliance deadlines and shields the promoters from future scrutiny regarding an abandoned or loss-making business model.