Strike-off of a company is a legal process under the Companies Act, 2013 whereby a company’s name is permanently removed from the records of the Registrar of Companies (ROC). It is generally used for companies that are not carrying on any business or operations and do not intend to continue in the future.

A company can apply for strike-off voluntarily by filing Form STK-2 with the ROC after clearing its liabilities and obtaining necessary approvals from shareholders, directors, and regulatory authorities. Alternatively, the ROC may also strike off a company suo moto if it finds that the company has not commenced business within one year of incorporation or has not carried on business for two consecutive financial years and has not applied for dormant status.

Before applying, companies must ensure:

• All statutory dues and liabilities are settled.

• All filings up to the date of application are completed.

• A special resolution or consent of 75% of members is obtained.

Once approved, the company’s legal existence ends, and it cannot continue operations. Strike-off is a cost-effective exit route for inactive companies.