Strike-off is not liquidation
The single most common confusion in reading MCA statuses is conflating strike-off with liquidation. They are different legal procedures with different outcomes. Liquidation is a formal insolvency process, typically under the Insolvency and Bankruptcy Code or through a voluntary winding-up, where a liquidator is appointed, assets are realised, and creditors are paid in priority order. Strike-off is a lighter administrative procedure where the ROC removes the company from the register after confirming it has no material liabilities and is not currently operating.
A company being struck off is not a statement that it owes money or failed. It is, much more often, an administrative cleanup for a dormant or inactive shell that was never wound up properly. Conversely, liquidation carries substantive implications for creditors, directors, and shareholders that strike-off does not.
The voluntary strike-off path (Section 248(2))
The voluntary path is initiated by the company itself. Under Section 248(2) of the Companies Act 2013, a company that has been inactive for two or more financial years can apply to the ROC for its name to be struck off. The formal application is Form STK-2, accompanied by a board resolution, a special shareholder resolution, an affidavit from directors confirming no outstanding liabilities, an indemnity bond, and the company's latest audited statements.
Once filed, the ROC reviews the application, publishes notice in the official gazette and a local newspaper inviting any objections from creditors or regulators, and — assuming no sustained objections — issues the final strike-off order. The full cycle typically runs three to six months end to end.
During the application window, the company's status on MCA moves to 'Under Process of Striking Off'. This is visible to anyone running due diligence on the company.
The compulsory strike-off path (Section 248(1))
The compulsory path is initiated by the ROC. Under Section 248(1), the ROC can strike off a company if it has reasonable cause to believe the company is not carrying on business or has not filed annual returns and financial statements (MGT-7 and AOC-4) for two or more consecutive years.
The procedure is similar: the ROC issues a notice (STK-1) to the company and its directors, publishes public notice, invites objections, and — in the absence of a successful defence — issues the final strike-off order. The compulsory path is significantly more common in practice than the voluntary path. Most strike-offs on the register are of this type: shell or dormant companies that simply stopped filing and were eventually administratively removed.
For a director, a compulsory strike-off carries a potential downside that voluntary does not: disqualification under Section 164(2). If the strike-off happens because of non-filing, the directors of the struck-off company may be barred from being appointed or reappointed as directors of any other company for five years.
Intermediate statuses you'll see
The MCA status field is not binary 'Active' vs. 'Struck Off'. There's a sequence of intermediate and adjacent states. The most common ones you'll encounter:
'Active' — the baseline. No strike-off or winding-up proceeding in progress. Note this does not guarantee operations; it only guarantees the company exists legally.
'Active Compliant' — seen on some records to specifically indicate the company has filed MGT-7 and AOC-4 for the most recent cycle. This is a stronger signal than bare 'Active'.
'Under Process of Striking Off' — either voluntary (Section 248(2)) or compulsory (Section 248(1)) strike-off is in progress. The company still legally exists but is on a path to removal barring intervention.
'Strike Off' — the ROC has issued the final order removing the company from the register. The company ceases to exist as a legal entity. Its assets, if any, vest in the government until/unless restored.
'Dormant under Section 455' — a voluntary declaration by the company that it is inactive but wants to remain on the register. Dormant status reduces compliance burden substantially but requires a formal filing to enter and exit.
'Under Liquidation' — a winding-up proceeding is in progress. Distinct from strike-off.
'Amalgamated' — the company has been merged into another entity via an NCLT-approved scheme. The CIN still exists as a historical record but the entity is no longer a going concern.
'Dissolved' — terminal status after liquidation completes and the final dissolution order is issued.
Can a struck-off company be restored?
Yes, within limits. Section 252 of the Companies Act allows an aggrieved party — a director, a member, a creditor, the company itself, or the Registrar — to apply to the National Company Law Tribunal (NCLT) for restoration of a struck-off company. The application must be filed within 20 years of the strike-off order.
Restoration is not automatic. The NCLT considers why the company was struck off, whether the applicant has legitimate cause, and whether restoration would prejudice other stakeholders. Successful restoration carries conditions — typically payment of outstanding compliance fees, filing of all missed returns, and sometimes additional penalties.
In practice, restoration applications are most commonly filed to unlock company bank accounts or assets that were frozen post-strike-off, or to reactivate a dormant shell for a new use case. Restoration for genuine business-resumption reasons is rarer than the count suggests.
How to read strike-off signals in due diligence
If a company you are investigating shows 'Under Process of Striking Off' or 'Strike Off', stop and rebuild your picture of the counterparty from scratch. A counterparty in active strike-off cannot meaningfully contract, open bank accounts, or enforce rights. Any commercial engagement needs to be routed through a different legal vehicle until the strike-off is either withdrawn or reversed.
If a company shows 'Dormant under Section 455', treat it as a conscious declaration by the company that it is not currently operating. This is different from ordinary inactivity — the company has made a formal filing to claim dormancy and reduce compliance burden, suggesting the dormancy is deliberate and likely long-running.
Cross-reference the status against the most recent filings. A company marked 'Active' but with no MGT-7 or AOC-4 filings for the past two years is likely heading toward compulsory strike-off even though its current status hasn't changed yet. Recognising this early matters for time-sensitive transactions.