A company can go for either when its purpose of running the business has been accomplished or it sees no profitability anymore in the current scope of the business to continue My Company can go for a VL u/s 59 of the Code, by assuring that there are no liabilities to be paid and if yes then we have sufficient provision to pay it off With Strike off, one of the reasons for the company for closure could be the same as above too So how can I differentiate between the both? How do I understand which route would be better and well suited for the closure of the company ?

Under the Companies Act, 2013, Strike Off is a simpler and cheaper closure route for inactive companies having negligible assets and no liabilities. In contrast, Voluntary Liquidation under the Insolvency and Bankruptcy Code, 2016 is a formal process involving appointment of liquidator, realization of assets and settlement of claims. If the company has assets, pending dues or requires structured closure, VL is preferred. If the company is inactive with clean records, Strike Off is generally more suitable.

Answer given by Shubhamm Sir at 09-May-2026 01:55 PM

Saanika ( Vasai (W) )

Voluntary Liquidation v/s Strike off