Can We Apply for the Strike Off a Company Immediately After Incorporation? 

Introduction

One legal method of shutting down an inactive firm is to strike off the company after it has been incorporated. After starting a business, many entrepreneurs question if they can take a voluntary strike. However, there are particular guidelines set forth by the Ministry of Corporate Affairs (MCA) regarding the timing and procedure of submitting an application for a voluntary strike off of a company.

Can a Company Apply for Strike Off Immediately After Incorporation?

No, a company cannot apply for strike off after incorporation immediately. MCA rules require the company to exist for at least one year before filing for voluntary closure. During this period, the company must complete all initial statutory compliances, including:

• Filing of Form INC-20A (Commencement of Business) if applicable.
• Submission of the first Annual Return and financial statements, if required.
• Ensuring there are no pending liabilities, dues, or obligations toward creditors.

Only after these conditions are satisfied can the company apply for Voluntary Strike Off Company using Form STK-2. This ensures the closure is legally valid and compliant.

Understanding the Waiting Period Before Strike Off

While some business owners may wish to close their company immediately, MCA regulations require a minimum one-year period after incorporation before filing for strike off. This waiting period serves a practical purpose:

• Establishing Company Identity: Time is needed to complete official records like DIN verification and registered office confirmation with RoC.
• Documenting No Business Activity: Directors must submit a statement confirming no operations, bank accounts, or transactions.
• Clearing Initial Obligations: Any statutory dues, taxes, or fees must be identified and settled before closure.
• Ensuring Accurate Records for Stakeholders: RoC maintains reliable public records for creditors, investors, and government bodies.
• Simplifying the Strike Off Process: A short operational history ensures Form STK-2 can be processed smoothly without MCA queries.

This approach shows that the waiting period is a practical compliance and verification step, not just a legal restriction.

Process of Strike Off After Incorporation

Once eligible, the process for voluntary strike off includes:

1. Board Resolution

• Directors must approve closure via board resolution.
• Authorizes a director to handle strike off filings and documentation.

2. Filing of STK-2 Form

• Form STK-2 is submitted to MCA along with the prescribed fee.
• Acts as the formal application for Voluntary Strike Off Company.

3. Attachment of Documents

• Indemnity Bond signed by directors (Form STK-3)
• Affidavit from directors (Form STK-4)
• Statement of Accounts certified by a Chartered Accountant (Form STK-8)
• Board resolution and shareholders’ special resolution
• Consent/NOC from creditors, if applicable

4. Public Notice by MCA

• MCA publishes a notice in the official Gazette inviting objections from the public.
• Notice period is typically 30 days.

5. Final Strike Off

• If no objections are received, the company’s name is removed from RoC records.
• The company ceases to exist as a legal entity.

Conclusion

In India, strike off company after incorporation cannot be done immediately. Companies must comply with MCA rules, clear any liabilities, and wait at least one year before filing for voluntary closure. Following the correct Voluntary Strike Off Company process ensures smooth and legally compliant closure. EbizFiling assists businesses in preparing documents, filing STK-2, and completing the process efficiently.

Suggested Read :

Can an LLP Apply for Strike Off Immediately After Incorporation?

When Can You File STK-2 to Close a Company?

What is Winding Up & How Does Strike-Off Work?

Strike Off an OPC: Process, Benefits & Requirements

Difference Between Dormant and Strike-Off Companies

FAQs