Closure & Strike-off of Companies (FTE Route)
If your company is no longer operational and you wish to close it in a legally compliant manner, opting for the FTE strike-off route under Section 248 of the Companies Act, 2013 may be suitable. Advisorate provides documentation support, filing preparation, and status tracking while ROC review and final approval remain subject to the relevant authority.
What is the FTE Strike-off Route?
The FTE strike-off route is a simplified route for companies to voluntarily apply for closure and removal of their name from the Registrar of Companies (ROC). This process is suitable for companies that have either never commenced business or have ceased operations.
Eligibility for Strike-off Under Section 248
A company can apply for closure under FTE if it meets the following conditions:
- It has not commenced business since incorporation or has not carried out any business activity in the last two years.
- It has no outstanding liabilities.
- It has obtained consent from the majority of its shareholders.
- It does not fall under the list of companies excluded from FTE (such as listed companies, Section 8 companies, etc.).
Documents Required for Company Closure
To proceed with the strike-off, the following documents are required:
- Indemnity Bond (STK-3) – Signed by all directors affirming there are no outstanding liabilities.
- Affidavit (STK-4) – Declaration by the directors confirming the cessation of business.
- Statement of Accounts – Certified by a Chartered Accountant, not older than 30 days from the application date.
- Board Resolution & Special Resolution – Approving the company's closure.
- Consent of Creditors (if applicable) – If the company has creditors, their no-objection confirmation is required.
- Application Form (STK-2) – Official strike-off application submitted to the ROC along with the prescribed fee.
Step-by-Step Process of Company Closure
Board Meeting & Approval
Pass a board resolution approving the company's closure.
Shareholder Approval
Obtain shareholders' consent via a special resolution.
Settle All Liabilities
Ensure there are no outstanding dues or liabilities.
Prepare and Submit Documents
File STK-2 along with all necessary attachments to the ROC.
Public Notice Issuance
The ROC will issue a public notice, allowing objections (if any) to be raised within 30 days.
Final Approval & Strike-off
If no objections are received, the ROC will remove the company's name from the register.
Expected Timeline
Our Company Closure & Strike-off Services
- Expert Guidance: Our team ensures accurate filing, preventing unnecessary delays.
- Comprehensive Compliance Support: We assist with documentation through to the final approval stage.
- Quick Processing: Speed up the closure process with our streamlined approach.
- Legal Protection: Avoid future liabilities by ensuring complete legal compliance.
Frequently Asked Questions
Typically, the company strike-off process takes between 3-6 months from the date of filing the STK-2 form. However, the timeline can vary based on ROC processing times and whether any objections are raised during the public notice period.
Yes, within 20 years of strike-off, a company can be revived by filing an application with the National Company Law Tribunal (NCLT). The tribunal may order restoration if it finds the strike-off was unjust or if it's in the interest of the company's members or creditors.
Yes, all pending annual returns and financial statements must be filed up to date before applying for strike-off. The ROC will reject applications from companies with outstanding statutory filing obligations.
After strike-off, any remaining assets of the company become the property of the government as 'bona vacantia' (ownerless property). This is why it's crucial to distribute or dispose of all company assets before proceeding with the strike-off application.
Yes, the FTE strike-off route is a simpler, more structured, and less expensive process compared to formal winding up. Winding up involves a more comprehensive liquidation procedure, often requiring court intervention, and is suitable for companies with significant assets and liabilities.