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Company Strike Off vs Winding Up: When to Use Which

TL;DR for CAs - Strike off is for defunct companies with limited assets/liabilities. - Winding up suits complex creditor/asset situations. - Tax and GST closure must be sequenced…

Demo CA

26 Jun 2026·3 min read

Corporate LawStrike OffWinding Up

TL;DR for CAs

  • Strike off is for defunct companies with limited assets/liabilities.
  • Winding up suits complex creditor/asset situations.
  • Tax and GST closure must be sequenced carefully.

What it is

Closure of a company can follow Fast Track Exit/strike off under Section 248 or formal winding up processes.

Who it applies to

Inactive companies, group restructuring, and promoters exiting entities.

Key provisions

  • STK forms and indemnity
  • Restrictions on strike off
  • Insolvency/winding up routes

Practical tips for CAs

Clear bank balances, file overdue returns, and close GST/TAN first.

Common mistakes

Applying for strike off with pending liabilities; ignoring director disqualification risks.


For general guidance only. Verify with the latest Finance Act, GST notifications, and ICAI guidance notes before advising clients.

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