Company Strike-Off (FTE) vs Winding Up
Company Strike-Off vs Winding Up — two ways to close a company in India
Overview
Companies that have ceased operations can be closed through Strike-Off (Fast Track Exit) or formal Winding Up. Strike-Off is faster and simpler for small dormant companies. Winding Up (through NCLT) is for companies with ongoing liabilities, disputes, or creditors.
Head-to-Head Comparison
| Factor | Company Strike-Off (FTE) | Winding Up | Winner |
|---|---|---|---|
| Process Time | 3–6 months | 1–3 years | A wins |
| Cost | ₹10,000–₹30,000 (professional fees + filing) | ₹1,00,000+ (legal + NCLT fees) | A wins |
| Court Involvement | No — MCA process only | Yes — NCLT adjudication | A wins |
| Eligibility | No active operations, no outstanding liabilities for 1+ year | Any company — even with liabilities | B wins |
| Outstanding Dues? | Must be zero before application | Creditors are settled as part of process | B wins |
| Form Filed | STK-2 with MCA | Petition to NCLT | A wins |
Data updated for FY 2025–26. Regulations may change — consult a professional before deciding.
Which Should You Choose?
Choose Company Strike-Off (FTE) if…
Choose Strike-Off if the company is dormant, has no outstanding liabilities, all ROC filings are current, and you want a quick closure within 3–6 months.
Get Company Strike-Off (FTE)Choose Winding Up if…
Choose Winding Up if the company has ongoing creditors, disputes, assets to be liquidated, or debt that needs formal resolution through NCLT.
Still not sure which to choose?
Our experts analyze your business situation and recommend the best structure — free consultation.
Talk to an Expert — FreeFrequently Asked Questions
Common questions about Company Strike-Off (FTE) vs Winding Up
STK-2 is the MCA form for a company to apply for voluntary strike-off under the Fast Track Exit (FTE) scheme. It must be accompanied by affidavits from directors, indemnity bond, statement of assets and liabilities, and an audited statement of accounts.
Related Comparisons
Pvt Ltd vs LLP annual compliance — cost, forms, and burden compared
ROC Filing vs GST Filing — two different compliance regimes for businesses
Voluntary vs Compulsory Winding Up — closing a company with or without court order
MOA vs AOA Amendment — changing company constitution documents