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Statutory Law Published 10 Oct 2026 • 6 min read

What is a Struck-Off Company? Causes, Legal Consequences & Revival Process

When a company is struck off by the Registrar of Companies under Section 248, its legal personality ceases to exist. Here is what business owners, creditors, and vendors need to know.

Key Compliance Takeaways

  • A company is struck off under Section 248 of the Companies Act, 2013 for non-commencement of business or 2-year filing defaults.
  • Once struck off, the company cannot legally transact, enter contracts, or operate bank accounts.
  • Directors of struck-off defaulting companies face disqualification under Section 164(2) for a mandatory period of 5 years.
  • Debts and liabilities do not disappear: promoters and directors remain personally answerable to creditors.
  • Revival is possible only through an appeal filed before the National Company Law Tribunal (NCLT) under Section 252.

1. Definition and Legal Meaning

A struck-off company is an incorporated legal entity whose name has been formally removed from the official Register of Companies maintained by the Registrar of Companies (ROC) pursuant to Section 248 of the Companies Act, 2013. Upon publication of the final notice in the Official Gazette (Form STK-7), the entity is dissolved and loses its legal standing.

2. Common Grounds for Strike-Off by the ROC

  • Failure to commence operations: The company failed to commence business within one year of its incorporation.
  • Two-year statutory default: The company has not carried on any business or operational activity for a period of two immediately preceding financial years and has not applied for Dormant Company status under Section 455.
  • Failure to file INC-20A: Non-filing of the Declaration of Commencement of Business (Form INC-20A) within 180 days of incorporation.
  • Physical verification failure: The ROC carried out physical inspection under Section 12(9) and found no registered office at the recorded address.

3. Severe Consequences of Strike-Off

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Immediate Freezing of Corporate Bank Accounts

The Ministry of Corporate Affairs directs Indian banks to freeze all operational current accounts associated with the struck-off CIN. Any post-dated cheques bounce.

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Disqualification of Directors (Section 164(2))

Directors who held office during the default period are barred from reappointment or appointment in any other company for five full years. Their DINs are deactivated.

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Loss of Asset Transfer Capability

The company cannot sell, mortgage, or transfer properties, patents, or vehicles registered in its name.

4. Can a Struck-Off Company Be Revived?

Yes. Any aggrieved person - including the company itself, a shareholder, creditor, or workman - may file an appeal before the National Company Law Tribunal (NCLT) under Section 252 within 20 years from the date of strike-off. The tribunal typically orders revival subject to clearing all compounding fees, filing retrospective returns, and paying statutory costs.

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