Closure of Private Limited Company
Formally dissolve your non-operational Private Limited Company by striking its name off the ROC records via **Form STK-2** (FTE).
Lawizer ensures your company closure is compliant with the Companies Act, 2013, handling all statutory forms and resolutions.
The Importance of Legal Closure (FTE)
The **Fast Track Exit (FTE)** route via **Form STK-2** is the simplified way to close a non-operational Private Limited Company. Failure to formally close means mandatory annual filings continue (incurring heavy fines), and the Directors remain liable. Legal striking off removes all future compliance burdens and protects the directors.
Key Benefits of Formal Company Closure
Removes legal hassles and avoids continuing non-compliance
Protects directors from future penalties and liabilities
Formal closure frees the company from all statutory obligations
Stops unnecessary financial losses (audit/filing fees)
Pre-Requisites for Striking Off (Form STK-2)
To apply for FTE under Form STK-2, ensure the following eligibility and documentation requirements are met:
Form INC-20A for Commencement of Business should have been filed
Annual ROC Return Filings should be up to date
Company should be inoperative for more than 2 consecutive financial years (or 1 year for FTE)
Bank Account of the Company should be closed and Statement of Accounts prepared
Latest filed Income Tax Returns, Indemnity Bond, and Affidavit prepared
DIN of all Directors should be in ‘APPROVED’ status
One valid Digital Signature (DSC) of an existing Director
Lawizer Deliverables
All filed e-forms with MCA (e.g., Form STK-2)
MCA payment challan for closure fees
Company Closure Certificate (Confirmation of Striking Off)
Drafted Indemnity Bond and Affidavit documents
Board and Shareholder Resolution for voluntary closure
Frequently Asked Questions
When the existence of a Private Limited Company as a legal entity comes to an end, it is known as closure of the company. This is typically achieved via the Striking Off or Winding Up process.
Closure is voluntary under Fast Track Exit (FTE). Winding up may be voluntary or court-ordered with a liquidator. Dissolution is the final legal termination of a company, often initiated by the court.
Even if business stops, the company remains legally active until ROC approves closure (STK-2). Filing ensures removal from MCA records and exemption from further annual compliance filings, avoiding penalties.
An MCA initiative for simplified and faster voluntary closure of inoperative companies (Pvt Ltd) by filing Form STK-2.
Any Private Limited Company (not Section 8) that has been inoperative for over **one year** since incorporation or one year prior to the application can apply for closure.
ROC filing fee for Form STK-2: **₹10,000**. Notary & Stamp Paper charges may vary (approx. ₹1,200 – ₹1,500).
Application for striking off, Board Resolution, Special Resolution (Shareholders), Director’s Affidavit, Indemnity Bond, and Statement of Assets & Liabilities.
Form STK-2 must be filed with the ROC office within **30 days** from the date of signing the Statement of Assets & Liabilities.