CCFS 2026 Window Open: 75% STK-2 fee discount + 90% waiver on back-filing penalties
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Updated: CCFS 2026 • Section 248(2) • C-PACE

How to Close a Private Limited Company in India
The Ultimate Guide to Strike Off

Whether you are moving on to a new project or closing an entity that has served its purpose, "Striking Off" a company is the cleanest way to say goodbye to an inactive business. With the CCFS 2026, the government has opened a rare, high-discount window for business owners to exit without the burden of historical penalties.

Author: CS Khushbu S. Joshi, ACS Updated: April 2026 Read time: ~7 min
75%
STK-2 Fee Discount
90%
Backlog Waiver
Jul 15
Scheme End Date
Section 248(2) — Companies Act, 2013

What is "Striking Off" a Company?

Striking Off is a voluntary process to remove a company's name from the Registrar of Companies (ROC). It is the preferred exit route for companies that are no longer operational and have zero assets or liabilities. Unlike a winding-up, it is faster, cheaper, and does not require a court order.

🚨 Limited Window — Ends July 15, 2026

Why Act Now? The CCFS 2026 Advantage

75%
STK-2 Fee Discount
You pay only 25% of the standard government filing fee for Form STK-2 under this scheme.
90%
Backlog Penalty Waiver
A 90% waiver on additional fees for pending annual returns such as AOC-4 and MGT-7.
C-PACE
Accelerated Processing
Applications are processed by MCA's dedicated Centre for Processing Accelerated Company Exit for faster approvals.
⏳ Scheme Window: April 15 – July 15, 2026  ·  After this date, full fees & per-day penalties resume
Why You Need a Professional

The Role of a Company Secretary (CS)

A Company Secretary is the professional gatekeeper of the Strike Off process. Under the new digital regime, their role is more critical than ever.

📜
Mandatory Certification
Form STK-2 must be certified by a practicing Company Secretary to ensure all declarations are legally sound and compliant with the Companies Act, 2013.
🏛️
Liaison with C-PACE
The MCA now processes exits through the Centre for Processing Accelerated Company Exit (C-PACE). A CS understands the specific nuances required to get an application approved without multiple rejections.
🔍
Compliance Audit
Before filing, your CS will verify that your company is truly "Strike Off ready"—ensuring no hidden liabilities could haunt directors later. A pre-clearance check is essential.
Section 248(2) — Eligibility Criteria

Who is Eligible?

A company can apply for voluntary closure if it meets any one of the following conditions and has completely zero assets and liabilities.

⚠️ Ineligible Situations: Companies that have been issued a final strike-off notice u/s 248(1) by the ROC, companies already in a winding-up process, companies that changed their name or shifted their registered office in the last 3 months, or companies with pending litigation cannot apply under this voluntary route.
Best Practices

Do's and Don'ts of Company Closure

Following these guidelines will ensure your Strike Off application is approved at the first attempt, without costly rejections or delays.

✅ Do's ❌ Don'ts
Ensure at least one director has an active DIN and a valid DSC for e-filing on the MCA V3 portal. Only one authorized signatory is required.
Don't assume all directors must have active DSCs to file. While all must sign physical documents, only one authorized director needs the DSC for portal submission.
Close all bank accounts before filing and obtain a Bank Closure Certificate from each bank as formal proof of account termination.
Don't apply if the company has changed its registered name or shifted its registered office address within the last 3 months prior to filing.
Take advantage of CCFS 2026 (ends July 15) to save 75% on STK-2 fees and 90% on pending annual return penalties.
Don't leave any statutory dues pending — GST cancellation, Income Tax returns, PF/ESIC dues must all be cleared before filing.
Have every director sign the physical Indemnity Bond (STK-3) and Affidavit (STK-4) — these are mandatory attachments to Form STK-2.
Don't hide any pending litigation — active court cases, NCLT proceedings, or pending show-cause notices will lead to immediate rejection by the ROC.
Common Misconceptions

Myths vs. Facts

These misconceptions stop many business owners from taking timely action, often leading to bigger compliance problems down the line.

💭 Myth
"If I don't file anything, the ROC will strike off the company for me anyway — so I don't need to do anything."
✅ Fact
While the ROC can initiate a compulsory strike-off for non-compliance under Section 248(1), it typically results in Director Disqualification — a 5-year ban from holding directorship in all Indian companies. A voluntary strike-off under Section 248(2) is the only professional and safe way to exit, protecting your reputation and future eligibility.
💭 Myth
"All directors need a Digital Signature Certificate (DSC) to close the company. This makes it very complicated."
✅ Fact
While all directors must sign the physical affidavits (STK-4) and indemnity bonds (STK-3), only one authorized director needs an active DIN and a valid DSC to digitally sign and submit the electronic Form STK-2 on the MCA portal. Your CS can manage the entire process.
💭 Myth
"Company closure is expensive and complicated — it's better to just leave it inactive and forget about it."
✅ Fact
Under CCFS 2026, the government has made voluntary closure dramatically more affordable — 75% off on STK-2 fees and 90% off on backlog penalties. "Leaving it inactive" means the company continues to incur annual filing obligations and ₹100/day late penalties on each form. The cost of inaction far exceeds the cost of proper closure.
The Step-by-Step Journey

The Strike Off Process Explained

The process is methodical and sequential. Skipping any step will result in rejection of your STK-2 application by the ROC. Your CS will manage each stage.

1
Board Resolution
Call a Board Meeting and pass a resolution authorizing a specific director to handle the Strike Off process, sign all documents, and interface with the ROC and MCA portal on the company's behalf.
2
Settle All Liabilities & Close Bank Accounts
Clear all outstanding debts, dues, and liabilities. Close all company bank accounts and obtain formal Bank Closure Certificates. File GST cancellation and ensure all ITRs are up to date. Settle any PF/ESIC contributions.
3
Member / Shareholder Approval
Obtain written consent from members holding not less than 75% paid-up share capital to proceed with the voluntary closure. This shareholder consent is a mandatory attachment to Form STK-2.
4
Statement of Accounts (CA Certified)
Get a Statement of Accounts prepared on the date of application (or not older than 30 days from the date of filing) by a licensed Chartered Accountant. The accounts must conclusively show zero assets and zero liabilities.
5
Prepare Documentation
Your CS will prepare the complete documentation bundle: STK-3 (Indemnity Bond, notarized, signed by all directors/members) and STK-4 (Individual Affidavits for each director, sworn before a Notary/Magistrate). These must accurately reflect the company's status.
6
File Form STK-2 on MCA V3 Portal (75% Discount)
Your CS files Form STK-2 on the MCA portal, utilizing the CCFS 2026 scheme for a 75% reduction in government fee. The form is digitally signed by the authorized director's DSC and certified by the practicing CS. All attachments are uploaded.
7
ROC Notice & Dissolution
C-PACE reviews the application. The ROC publishes a public notice in the Official Gazette. If no objections are received from creditors, the government, or other stakeholders within the stipulated period, the company's name is struck off the register and the company is formally dissolved.
Why Close with CS Khushbu S. Joshi & Associates

Don't Let an Inactive Company Become a Lifelong Liability

Navigating the MCA V3 portal and the C-PACE requirements can be a technical maze. We specialize in seamless company exits, ensuring that your transition is legally watertight and cost-effective under the new CCFS 2026 guidelines. Take advantage of the scheme before July 15, 2026.