Enquire Now
Closure of Private limited Company

CLOSURE OF PRIVATE LIMITED COMPANY

Are you paying high compliances cost but not running the business operations? Get closure of your private Limited Company with proper process and avoid paying heavy costs.

APPLY FOR CLOSURE OF COMPANY NOW

    OVERVIEW OF CLOSURE OF
    PRIVATE LIMITED COMPANY

    In case the company or directors or owners do not wish to continue the business and decides to discontinue or wind up the company, they may go for the options of the closure. Once the Company is closed down, the Company ceases to exists.

    • Strike off its name from Register of Companies is the most easiest and feasible way to close a company.
    • Such type of closure is preferred when a company is inoperative for a certain period.
    • Winding up is also an option for closure, it is the liquidation of Company’s assets which are collected and sold in order to pay the debts incurred.
    • When the company winds up firstly the debts, expenses and costs are paid off and remaining amount distributed among the shareholders.

    DOCUMENTS REQUIRED FOR CLOSURE OF COMPANY

    KYC details
    KYC details

    Pan card & Aadhar card of directors & members

    Statement of Accounts
    Statement of Accounts

    Detailed account statement of the company

    Documents of Incorporation
    Documents of Incorporation

    • MoA
    • AoA
    • Certificate of Incorporation
    • PAN card
    • other registration certificates

    Activity Details
    Activity Details

    Whether the company has been operative for any period
    OR
    since when the operations are discontinued

    Creditors’ NOC
    Creditors’ NOC

    NOC for closure from creditors to company

    NOC from Regulatory Bodies
    NOC from Regulatory Bodies

    NoC for closure to be obtained from Income Tax Department, SEBI, RBI, etc

    Legal Liabilities
    Legal Liabilities

    A statement regarding any pending litigations.

    WHY TO DO CLOSURE OF PRIVATE LIMITED COMPANY REQUIRED?
    • No non-compliance risk – Legal shut down of business avoid the dispute which might arise in future.
    • No risk of high penalties – Penalties occurring due to any default will not get increased due to official closure. However liability till date of closure need to be paid off.
    • No Yearly compliance cost to be paid – Closure of firm in proper manner will end the requirement of payment of various cost which might arise due to non-intimation of closure.
    • No risk of getting into default – Even after stopping the running of operation, risk of default may arise due to unawareness of closure. Legal closure will help in avoiding such defaulting liabilities.

    PROCESS OF CLOSURE OF PRIVATE LIMITED COMPANY

    1
    CONDUCT OF BOARD MEETING

    Following agenda will be discussed in board Meetings:

    • Fixation of time, date and place of holding Extra Ordinary General Meeting.
    • Approving closure of private limited company.
    2
    CONVENE GENERAL MEETING
    • Extra Ordinary General Meeting will be conducted for:-
      Approval of shareholders for closure.
    • Pay off all the liabilities to creditors.
    3
    FILING OF E FORM FOR CLOSURE

    Filing of Forms with required documents and information, along with the approval statement of shareholders and other authorities if required.

    4
    NOTICE OF CLOSURE

    The notice shall be placed on the website of MCA, as well as published in the Official Gazette and published in a newspapers.

    5
    CLOSURE OF PRIVATE LIMITED

    When examiner is satisfied that the forms are filed accurate and appropriate. ROC shall issue a order of closure of the company, strike off the name and dissolve the company.

    RELATED SERVICES

    ROC Filing of Company
    Appointment of Auditor
    KYC E-Form of Directors
    DPT-3
    INC-20A(Commencement of Business)
    Frequently ASKED Questions

    How one can close a Company?

    One can close a company by adopting any of the following ways:
    (A) Winding Up
    (B) Strike Off a Company through Fast Track Exit

    When strike-off application can be filed?

    Strike-off application can be filed only when-

    • The company repays or extinguishes all its liabilities.
    • The company before filing the closure application receives a No Objection Certificate (NOC) from the creditors.
    • Consent received in the meeting by all the directors for the closure by signing a special resolution or a consent of 75% percent members having paid up share capital.

    How to find if the Company is eligible for Closure?

    Company shall be eligible for closure when the company has completed the following requirements:

    • Company completed all the required compliances.
    • Company has bank closure certificate.
    • All the directors of the company have active DIN.

    Can Registrar of Company initiate strike-off of the Company?

    The Registrar of Companies can strike-off the company name from the register of companies if believes that:

    • A Company has failed to commence its business within one year of its incorporation or
    • A company is not carrying on any business operation for two immediately preceding financial years and also has not made any application for obtaining dormant company status.

    In how much time period company can be dissolved under fast track exit scheme?

    As per the Act, After filing the application it takes about 90 days for striking off the Company from the records of MCA. On receiving approval by RoC for strike-off, the notice of strike-off of the company is published on its website for any third parties objection or representations.

    When a company be said to be dissolved as per law?

    As per law company be said to be dissolved when RoC publish a list of companies struck off in the Official Gazette. In case of fast-track exit mode The Company is considered dissolved from the date of publication of the notice in Official Gazette.

    What is the time limit to file for closure of company with the Registrar?

    The time limit for filing documents for closure is within 30 days from the date of signing of the assets and liabilities statement.

    What is it necessary to intimate the Registrar for closing the Company?

    To update the MCA data and make company free from all its legal compliances, it is necessary to intimate the Registrar for the closure of Company.

    What is fast track exit from MCA?

    Fast Track Exit refers to a scheme introduced by the MCA for the inactive companies to wind up and struck off their names from the record of MCA with lesser formalities.

    Can restoration of company can be done after it is struck off the register?

    For changing the status of the company from strike off to active, it is required to apply to the National Company Law Tribunal (NCLT) for restoration of the name by giving valid reasons for the default.

    Can the Name of a winded up /closed company be used for another entity in future?

    Yes. In case any company’s name is removed from the records of Registrar of Companies (ROC) and the Ministry of Corporate Affairs (MCA), name can be used by any other entity in future.

    Why one is Required to do Company Closure?

    Company being a legal is separate entity from its director and thus there is a requirement for company closure.

    Most Popular Services