Closure of a Company

A private limited company is an artificial judicial person and requires various compliances like appointment of Auditor, regular filing of income tax return, annual return filing and more. Failing to maintain compliance for a Company could result in fines and/or disqualification of the Directors from incorporating another Company. Therefore, if a private limited company has become inactive and there are no transactions in the company, then it is best to wind up the Company.

Voluntary winding up of a company can be initiated at anytime by the shareholders of the company. In case there are any secured or unsecured creditors or employees on-roll, the outstanding dues must be settled. Once all the dues are settled, the bank accounts of the company must be closed. Finally, the company must regularise any overdue compliance like income tax return or annual filing and surrender the GST registration. Once, all activities are stopped and the registrations are surrendered, the winding up application petition can be filed with the Ministry of Corporate Affairs.

IndiaFilings can help you wind up your Company, quickly and easily. IndiaFilings can help you initiate the winding up process within 10 to 14 business days. The entire process for winding up of a company can be completed within 3 to 6 months, subject to government processing times. The timeline for winding up of a company could also differ from case to case, based on unique circumstances. To discuss more about winding up a company, get in touch with an IndiaFilings Advisor.

FAQs

When existence of the Company as a legal entity comes to an end it is known as the Closure of the Company.

- Closure of the company is done voluntarily and is done through the fast track exit scheme.
- Winding up of the company may be voluntary or by the order of the Court by appointing an official liquidator to monitor the process of winding up.
- Dissolution is initiated by the Court for ending the legal existence of the Company.

It is necessary to file Closure with the ROC as ROC or MCA data base need to be updated and the Company is free from all its legal compliances as it is officially closed. Even though business of the company is closed, unless closure documents are filed and approved by the ROC, company is not legally closed and the company needs to file all the regular returns.
FTE is a company closure scheme initiated by MCA for easy and faster closure of Company.
Any Company which is not a Section 8 Company and has been inoperative for more than 1 year from the date of its incorporation can apply for Closure of Company under FTE scheme.
The filing fees for Form FTE is Rs. 5000. Fill the above details and submit. You will get documents in 1 minute.
Application for Striking off of the Company, Board Resolution for closure, Consent of Directors, Director's Affidavit, Indemnity Bond, Statement of Assets and Liabilities.

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