Companies Act & MCA

Company Strike-Off Under Section 248: When Closure Is Not Enough

Finin2min Compliance Desk·June 2026·7 min readSTK-2

Stopping business is not the same as closing a company. Until the company's name is properly removed or it is otherwise legally closed, filings, liabilities and notices can continue.

For broader context, see the Companies Act, MCA and Startup Compliance Hub.

Section 248 base

Section 248 gives the Registrar power to remove the name of a company from the register in specified circumstances and also provides a route connected with company application, subject to conditions.

Use the Companies Act Related-Party Transaction Approval Checker to work through the related inputs before acting.

Before strike-off

Area	Control
Assets and liabilities	Clear or document settlement before closure route.
Bank accounts and statutory registrations	Plan GST, PAN, TAN, PF/ESI and bank cleanup.
Pending litigation/demand	Identify before application.
ROC filings	Bring required records up to date or evaluate professional route.
Board/shareholder approvals	Document decision and authorisation.

For the connected rule, example or next step, see Share Transfer and Transmission Under Section 56: Private Company Checklist.

Closure file

Latest financial statements and nil/settled liability support.
Bank closure or balance proof.
Tax/GST status and demand check.
Board/shareholder resolutions.
STK filing acknowledgement and final status.

For the connected rule, example or next step, see Buy-Back of Shares Under Section 68: Private Company Controls.

Finin2min warning

Do not abandon a company. Dormant filings and notices can continue even after business operations stop.

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Official sources used

This article is intentionally source-limited to official MCA / India Code material. Verify final filing positions with the latest Act, Rules, MCA forms and portal advisories before publishing.

FAQs

Which section deals with removal of company name? ▾

Section 248 deals with power of Registrar to remove name of company from register.

Is stopping operations enough? ▾

No. Legal closure/strike-off route must be completed where chosen.

Should liabilities be cleared first? ▾

Yes. Assets, liabilities and pending statutory matters should be reviewed before strike-off.

Source and review trail

Use the current official instrument, portal or regulator publication before acting. This panel separates the category authority from page-specific references.

Primary category: Companies Act & MCA
Official starting point: www.mca.gov.in