Legal

How to Close a Private Limited Company in India: STK-2 Strike-Off Cost, Process & Timeline (2026)

Not every business succeeds. Here is how to legally shut down a dormant or inactive Private Limited Company using Form STK-2 — including costs, mandatory pre-requisites, and avoiding director disqualification.

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How to Close a Private Limited Company in India: STK-2 Strike-Off Cost, Process & Timeline (2026) - CorporateSaathi
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Not every business succeeds. Here is how to legally shut down a dormant or inactive Private Limited Company using Form STK-2 — including costs, mandatory pre-requisites, and avoiding director disqualification.

Abandoning an inactive startup by ignoring yearly compliance filings is dangerous. Under Section 248 of Companies Act 2013, the ROC can disqualify directors for 5 years, deactivate DINs, and impose severe penalties.

The legally safe and clean way to shut down is Voluntary Strike-Off via Form STK-2.

In this guide, our experienced CA team outlines the cost, process, and documents required.

1. Eligibility for Form STK-2 Strike-Off

  • No business operations for at least 1 year (or 2 preceding financial years).
  • Zero assets and liabilities.
  • No pending litigation or tax demands.
  • Special Resolution passed by 75% shareholders.

2. Step-by-Step Procedure

  • Convene Board Meeting & EGM to pass Special Resolution.
  • Close all company current bank accounts and obtain Bank Closure Certificate.
  • Prepare Mandatory Attachments: Form STK-4 (Indemnity Bond), Form STK-3 (Affidavit), Form STK-8 (CA Statement of Accounts).
  • File Form STK-2 on MCA V3 Portal with ₹10,000 MCA fee.
  • ROC publishes public notice (STK-5) for 30 days, followed by dissolution notice (STK-7).

3. Total Cost Breakdown

  • MCA Form STK-2 Government Fee: ₹10,000
  • Stamp Paper & Notary Charges: ₹1,000
  • CA Certification of STK-8 Financials: ₹2,500
  • CorporateSaathi Execution Fee: ₹4,999
  • Total Estimated Cost: ₹18,499 (All-Inclusive)
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Written & Reviewed by CorporateSaathi CA

FCA & ACS

Senior CA & CS • Tax & Compliance Practice

Our CA is a Fellow Chartered Accountant (FCA) and Associate Company Secretary (ACS) with 12+ years of experience in MCA company incorporations, GST tax litigation, and ROC audit compliance.

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How to Close a Private Limited Company in India: STK-2 Strike-Off Cost, Process & Timeline (2026)