{"id":856,"date":"2025-08-27T00:00:00","date_gmt":"2025-08-27T00:00:00","guid":{"rendered":"https:\/\/rize.blog.razorpay.in\/form-stk-2-winding-up-of-companies\/"},"modified":"1970-01-01T00:00:00","modified_gmt":"1970-01-01T00:00:00","slug":"form-stk-2-winding-up-of-companies","status":"publish","type":"post","link":"https:\/\/razorpay.com\/rize\/blogs\/form-stk-2-winding-up-of-companies\/","title":{"rendered":"Form STK-2 for Winding Up of Companies: Procedure, Fees &#038; Documents"},"content":{"rendered":"<h2 id=\"\"><strong id=\"\">What is Form STK-2, and When is it Used?<\/strong><\/h2>\n<p id=\"\">Form STK-2 is prescribed under <strong id=\"\">Section 248(2) of the Companies Act, 2013<\/strong>, allowing a company to apply for voluntary strike-off. It is used by companies that are:<\/p>\n<ul id=\"\">\n<li id=\"\">Not carrying on any business for the last <strong id=\"\">two consecutive financial years<\/strong>, or<\/li>\n<li id=\"\">Have not sought the status of a <strong id=\"\">dormant company<\/strong>, and<\/li>\n<li id=\"\">Do not have any outstanding liabilities.<\/li>\n<\/ul>\n<p id=\"\">For example, consider a <strong id=\"\">startup that launched operations but never scaled up<\/strong>. Instead of continuing to maintain compliance (like audits, annual filings, and tax submissions) with no business activity, the founders can choose to file Form STK-2 and officially close the company.<\/p>\n<h2 id=\"\"><strong id=\"\">What are the Benefits of Filing STK-2?<\/strong><\/h2>\n<p id=\"\">Filing Form STK-2 provides several benefits:<\/p>\n<ul id=\"\">\n<li id=\"\"><strong id=\"\">Quick and cost-effective closure<\/strong> compared to liquidation.<\/li>\n<li id=\"\"><strong id=\"\">Savings on audits and compliance costs<\/strong> that continue even if the company has no operations.<\/li>\n<li id=\"\"><strong id=\"\">Faster process<\/strong> \u2013 usually completed within a few months.<\/li>\n<li id=\"\"><strong id=\"\">Protection of directors and shareholders<\/strong> from future penalties or liabilities.<\/li>\n<\/ul>\n<p id=\"\">This makes STK-2 a practical option for small companies and startups that wish to wind up smoothly.<\/p>\n<h2 id=\"\"><strong id=\"\">What are the Eligibility Criteria to File STK-2?<\/strong><\/h2>\n<p id=\"\">Not every company is eligible to file STK-2. The key criteria are:<\/p>\n<ul id=\"\">\n<li id=\"\">Applicable to <a id=\"\" href=\"https:\/\/razorpay.com\/rize\/blogs\/characteristics-of-private-limited-company\/\"><strong id=\"\">Private Limited Companies<\/strong><\/a>, <a id=\"\" href=\"https:\/\/razorpay.com\/rize\/blogs\/what-is-one-person-company\/\"><strong id=\"\">One Person Companies (OPC)<\/strong><\/a>, and <strong id=\"\">Unlisted Public Companies<\/strong>.<\/li>\n<li id=\"\">The company should have <strong id=\"\">no pending liabilities<\/strong> and must clear all dues before applying.<\/li>\n<li id=\"\">The business must not have carried on <strong id=\"\">any activity for at least two consecutive years<\/strong>.<\/li>\n<li id=\"\"><strong id=\"\">Board and special resolutions<\/strong> (approved by at least 75% of shareholders) are mandatory.<\/li>\n<\/ul>\n<p id=\"\">Companies that are listed, under inspection, or involved in ongoing litigation are not eligible for strike-off.<\/p>\n<h2 id=\"\"><strong id=\"\">What Documents Are Required for STK-2?<\/strong><\/h2>\n<p id=\"\">The following documents must be attached while filing STK-2:<\/p>\n<ul id=\"\">\n<li id=\"\"><strong id=\"\">Board resolution<\/strong> and <strong id=\"\">special resolution<\/strong> approving strike-off.<\/li>\n<li id=\"\"><strong id=\"\">Affidavit by directors (Form STK-4)<\/strong> declaring no pending liabilities.<\/li>\n<li id=\"\"><strong id=\"\">Indemnity bond by directors (Form STK-3),<\/strong> ensuring liability coverage.<\/li>\n<li id=\"\"><strong id=\"\">The company&#8217;s latest audited financial statements<\/strong>.<\/li>\n<li id=\"\">Directors\u2019 <strong id=\"\">PAN, Aadhaar, and <\/strong><a id=\"\" href=\"https:\/\/razorpay.com\/rize\/blogs\/digital-signature-certificate-dsc\/\"><strong id=\"\">digital signatures (DSC)<\/strong><\/a>.<\/li>\n<li id=\"\">Incorporation documents like <a id=\"\" href=\"https:\/\/razorpay.com\/rize\/company-registration\/document-required\/certificate-of-incorporation\"><strong id=\"\">Certificate of Incorporation<\/strong><\/a><strong id=\"\">, <\/strong><a href=\"https:\/\/razorpay.com\/rize\/blog\/difference-between-moa-and-aoa\"><strong id=\"\">MoA, and AoA<\/strong><\/a>.<\/li>\n<\/ul>\n<h2 id=\"\"><strong id=\"\">How to File the STK-2 Form? Step-by-Step Guide<\/strong><\/h2>\n<p id=\"\">Here\u2019s a step-by-step guide to filing Form STK-2:<\/p>\n<ol id=\"\">\n<li id=\"\"><strong id=\"\">Board Approval<\/strong>: Conduct a board meeting and pass a resolution for closure.<\/li>\n<li id=\"\"><strong id=\"\">Shareholder Consent<\/strong>: Obtain a special resolution with 75% shareholder approval.<\/li>\n<li id=\"\"><strong id=\"\">Clear Liabilities<\/strong>: Pay off loans, creditors, and statutory dues.<\/li>\n<li id=\"\"><strong id=\"\">Prepare Documents<\/strong>: Collect Forms STK-2, STK-3, STK-4, audited accounts, <a href=\"https:\/\/razorpay.com\/rize\/company-registration\/document-required\/moa\">MoA<\/a>, <a href=\"https:\/\/razorpay.com\/rize\/blogs\/articles-of-association\/\">AoA<\/a>, and ID proofs.<\/li>\n<li id=\"\"><strong id=\"\">Online Filing<\/strong>: File Form STK-2 on the MCA portal along with attachments.<\/li>\n<li id=\"\"><strong id=\"\">Pay Government Fee<\/strong>: \u20b910,000 is payable at the time of filing.<\/li>\n<li id=\"\"><strong id=\"\">ROC Review<\/strong>: The Registrar verifies documents and issues a public notice.<\/li>\n<li id=\"\"><strong id=\"\">Strike-Off Approval<\/strong>: Once satisfied, the ROC strikes the company name from the register.<\/li>\n<\/ol>\n<h2 id=\"\"><strong id=\"\">Voluntarily Removing Company Name using Form STK-2<\/strong><\/h2>\n<p id=\"\">Companies can <strong id=\"\">voluntarily apply<\/strong> for strike-off by:<\/p>\n<ul id=\"\">\n<li id=\"\">Clearing all debts and liabilities.<\/li>\n<li id=\"\">Passing a <strong id=\"\">special resolution<\/strong> with the approval of at least <strong id=\"\">75% members<\/strong>.<\/li>\n<li id=\"\">Seeking <strong id=\"\">NOC\/approval from regulatory bodies<\/strong> (if the company is under their regulation).<\/li>\n<\/ul>\n<h2 id=\"\"><strong id=\"\">Effect of Removing Name from Register of Companies<\/strong><\/h2>\n<p id=\"\">Once the company\u2019s name is removed under Section 248:<\/p>\n<ul id=\"\">\n<li id=\"\">The <strong id=\"\">company is dissolved<\/strong> and ceases to exist legally.<\/li>\n<li id=\"\">The <strong id=\"\">Certificate of Incorporation is cancelled<\/strong>.<\/li>\n<li id=\"\">The company cannot carry on any business operations.<\/li>\n<\/ul>\n<p id=\"\">However, <strong id=\"\">directors, managers, and shareholders remain liable<\/strong> for any past dues, fraud, or pending obligations as if the company had not been dissolved.<\/p>\n<h2 id=\"\"><strong id=\"\">Closing of Company by Filing Form STK-2<\/strong><\/h2>\n<p id=\"\">The closure process through STK-2 involves:<\/p>\n<ul id=\"\">\n<li id=\"\">ROC verification of pending liabilities.<\/li>\n<li id=\"\">Publication of a <strong id=\"\">public notice<\/strong> inviting objections.<\/li>\n<li id=\"\">Striking off the company\u2019s name from the register.<\/li>\n<li id=\"\">Publishing the strike-off notification in the <strong id=\"\">Official Gazette<\/strong>.<\/li>\n<\/ul>\n<p id=\"\">Once published, the company is considered officially dissolved.<\/p>\n<h2 id=\"\"><strong id=\"\">What are the Consequences of Not Filing STK-2?<\/strong><\/h2>\n<p id=\"\">Failing to close an inactive company can lead to several consequences:<\/p>\n<ul id=\"\">\n<li id=\"\"><strong id=\"\">Director disqualification<\/strong> under the Companies Act.<\/li>\n<li id=\"\"><strong id=\"\">Heavy penalties and fines<\/strong> for non-filing of annual returns and financial statements.<\/li>\n<li id=\"\"><strong id=\"\">Government-initiated strike-off<\/strong> without the company\u2019s consent.<\/li>\n<li id=\"\">Restrictions on <strong id=\"\">starting new companies<\/strong> for disqualified directors.<\/li>\n<li id=\"\">Continued obligations for <strong id=\"\">tax filings and ROC compliance<\/strong> despite no business activity.<\/li>\n<\/ul>\n<h2 id=\"\"><strong id=\"\">What Challenges Can You Face While Filing STK-2?<\/strong><\/h2>\n<p id=\"\">Some common challenges include:<\/p>\n<ul id=\"\">\n<li id=\"\">Delays in obtaining <strong id=\"\">tax or GST clearance<\/strong>.<\/li>\n<li id=\"\">Errors in <strong id=\"\">affidavits or indemnity bonds<\/strong>.<\/li>\n<li id=\"\">Issues with <strong id=\"\">expired DSCs<\/strong> of directors.<\/li>\n<li id=\"\">Non-cooperation from <strong id=\"\">shareholders or directors<\/strong>.<\/li>\n<li id=\"\">ROC objections due to mismatched or incomplete details.<\/li>\n<\/ul>\n<h2 id=\"\"><strong id=\"\">What is the Cost Involved in STK-2?<\/strong><\/h2>\n<p id=\"\">The cost of filing Form STK-2 includes:<\/p>\n<ul id=\"\">\n<li id=\"\">Government fee<\/li>\n<li id=\"\">Professional charges<\/li>\n<li id=\"\">Notary and affidavit charges<\/li>\n<li id=\"\">DSC renewal costs, if applicable<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Learn about Form STK-2 for winding up companies under the Companies Act. Check the filing procedure, fees, eligibility, and required documents for voluntary closure.<\/p>\n","protected":false},"author":1,"featured_media":857,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-856","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/posts\/856","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/comments?post=856"}],"version-history":[{"count":1,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/posts\/856\/revisions"}],"predecessor-version":[{"id":1243,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/posts\/856\/revisions\/1243"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/media\/857"}],"wp:attachment":[{"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/media?parent=856"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/categories?post=856"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/tags?post=856"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}