Close a Private Limited Company
Private limited corporations can shut by selling the business, winding up a dead firm, winding up a voluntary company, or winding up a compulsory company. Each process’s steps are listed. Details on the dissolution procedure, forms needed, and the role of the company liquidator are provided.Private limited corporations can shut by selling the business, winding up a dead firm, winding up a voluntary company, or winding up a compulsory company. Each process’s steps are listed. Details on the dissolution procedure, forms needed, and the role of the company liquidator are provided.
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INTRODUCTION
Closure of a Private limited company
In the event that the directors or owners of the firm decide to close down or terminate operations, they may take closing alternatives into consideration. Removing a company’s name from the Register of Companies is the most practical or straightforward method of closing it. When a business is closed for a while, this is the better option. A winding-up petition is one of the other choices, but it requires more effort, money, and compliance.
Following acceptance of the strike-off, the company’s name is struck from the register, making it legally non-existent. The business must complete all compliance requirements before submitting a strike-off application. The application needs the expert’s help and is supported by a number of documentation.
Ways of winding up of a company in India
Winding up
When the business has assets and obligations and is in the operational stage, this option is recommended. The consent of Directors, Members, and creditors will be involved. Additionally, a liquidator must be appointed to oversee the company's operations throughout the entire procedure. It is frequently a laborious procedure.
Striking off
A business with little or no external liabilities is more likely to strike off. A firm may file for strike-off, often known as fast-track departure, if it has not operated since its founding or within the last two years. The company's assets and liabilities must be zero, and it must also have complied with all legal rules.
A LIST OF DOCUMENTS
Documents required for strike-off of company
Incorporation Documents
The company's AoA, PAN card, Certificate of Incorporation, and other certifications of registration
Accounting Information
The most recent year's financial statement of the company, prepared before 30 days before application submission
Details of Activity
Describes the length of time the business has been in operation. If so, when have the operations been suspended?
Legal Liabilities
An announcement about any ongoing legal actions the corporation may be involved in
NOC from Creditors
If there are any creditors, the business must give a NOC for closure (a draft will be supplied by LW specialists).
NOC from Regulatory Bodies
NoC for closure must be acquired, if applicable, from the Income Tax Department, SEBI, RBI, etc.
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Close business in 3 Easy Steps
1. Respond to Quick Questions
- Give our questionnaires fewer than .15 minutes to complete.
- Give the essential information and paperwork needed to convert a proprietorship to a partnership.
- Pay using a safe and secure payment gateway.
2. Experts are Here to Help
- Dedicated Relationship Manager
- drafting the required resolutions
- affidavit and indemnity bond drafting
- Getting additional required paperwork ready
- filing an application for a strike-off with the MCA
3. Closure application is filed
- All it takes is 20 working days*
Process to dissolve a private limited company
Day 1 - 2
- Talking about and gathering fundamental data
- Give the necessary paperwork.
Day 3 - 8
- Review of the details and documents furnished
- drafting the indemnification bond, affidavit, and other paperwork
- Give a properly completed indemnification bond and affidavit.
- List ItemAfter reviewing, provide signed copies of the papers.
Day 9 - 15
- Getting applications ready for online submission
- submitting the necessary paperwork to the MCA
- Application for the firm name to be struck out
Day 16 onwards
- Processing period for government approval of strike-off
- Following approval, the MCA will publish the notice of strike-off.
Explore winding up of a company in India
Frequently Asked Questions
- Only if the business pays off all of its debts and obtains a No Objection Certificate (NOC) from its creditors prior to filing the closure application may it be submitted. Moreover, call a meeting when all directors vote to close the company by signing a special resolution or obtaining the approval of 75% of members with regard to paid-up share capital.
The company name may be removed from the list of companies by the Registrar of Companies if he has good reason to suspect:
● The firm did not start operating within a year of its formation; or
● The company did not operate or conduct any business during the two fiscal years that immediately preceded it and did not file an application to become a
The appropriate course of action in the event that the business is not operating as it
reduces the annual compliance expense
No chance of noncompliance.No chance of severe fines and legal action
No chance of defaulting
The process of having the company removed from MCA records takes roughly ninety days once the application is filed with the Ministry of Corporate Affairs. Following RoC’s acceptance of the strike-off, the notice of strike-off is posted on its website and is available for any objections or third-party representations.
- The Official Gazette will carry a list of corporations that RoC has struck off. The company that is in fast-track exit mode shall be deemed closed as of the date when the notice is published in the official gazette.
Within 30 days of the assets and liabilities statement’s signing date, the closing paperwork must be submitted.
