Close a Private Limited Company

Closure of a Private limited company

If the company owners or directors decide to discontinue or wind up the business, they may consider for the options of the closure. Most feasible or easiest way to close a company is striking off its name from Register of Companies. This is preferable when a company is inoperative for a certain period. Other options include a winding-up petition, however that involves more time, investment and compliance.

On approval of the strike off, the company’s name is removed from the register and thus, it is not existent in the eyes of laws. The company must fulfill all the compliance before proceeding for the strike-off application. The application is accompanied by various documents and requires assistance from the professional.

Ways of winding up of a company in India

Winding up

This option is preferred when the company is in the operative stage and has assets and liabilities. It will include approval from Members, Directors, and creditors. It also requires appointing a liquidator for the said process to manage the company’s affairs during the whole process. It is often time-consuming process.

Striking off

Striking off is preferred by a company which has relatively no or less outside liabilities. When a company is inoperative since its inception or in the past two years, it may apply for strike-off, often referred as fast-track exit. The primary condition is that the company has no assets or liabilities and has complied with relevant applicable provisions.

Documents required for strike-off of company

Incorporation Documents

Company’s MoA – AoA, Certificate of Incorporation, PAN card and other registration certificates

Accounting Information

The financial statement of the Company for the most recent year, prepared prior to 30 days of filing the application

Details of Activity

Details whether the company has been operative for any period. If yes, since when the operations are discontinued

Legal Liabilities

A statement regarding pending litigations, if any involving the company

NOC from Creditors

The company must provide NOC for closure from creditors, if any
(Draft to be provided by LW experts)

NOC from Regulatory Bodies

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

Have questions? Don’t worry, we are here to help!
Call us at 1800 313 4151 or Email us: support@legalwiz.in

Close business in 3 Easy Steps

1. Answer Quick Questions

Spare less than 15 minutes to fill in our Questionnaires
Provide basic details & documents required for closure
Make payment through secured payment gateways

2. Experts are Here to Help

Assigned Relationship Manager
Drafting of necessary resolutions
Drafting of affidavit & indemnity bond
Preparation of other necessary documents
Filing of Strike-off application with MCA

3. Closure application is filed

All it takes is 20 working days*

*Subject to Government processing time

Process to dissolve a private limited company

Day 1 - 2

Discussion and collection of basic Information
Provide required documents

Day 3 - 8

Review of the details and documents furnished
Drafting of necessary resolutions
Drafting of the affidavit, indemnity bond, and other documents
Provide duly executed affidavit & indemnity bond
Provide signed documents after review

Day 9 - 15

Preparation of applications for online filing
Filing of required forms and documents with MCA
Application for the striking-off company name

Day 16 onwards

Government processing time to approve strike-off
The notice of strike-off to be published by MCA after approval

Explore winding up of a company in India

Frequently Asked Questions

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When an application for strike-off can be filed?

It can be filed only when the company repays or extinguishes all its liabilities and receive a No Objection Certificate (NOC) from the creditors before filing the closure application. And conduct a meeting where all the directors decide upon the closure by signing a special resolution or a consent of seventy-five percent members regarding paid up share capital.

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Can Registrar of Company also initiate strike-off?

The Registrar of Companies can remove the company name from the list of companies if, he has reasonable cause to believe that:
● A Company failed to commence its business within one year of its incorporation; or
● A company is not carrying on any business or operation for two immediately preceding financial years and has not made any application within such period for obtaining the status of a dormant company.

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What are the benefits of closure of private limited company?

The closure is the best option in case the company is not running as it:
Saves the yearly compliance cost
No non-compliance risk.
No risk of high penalties and prosecutions
No risk of getting into default

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How long does it take for a company to be dissolved under fast track exit scheme?

After filing the application with the Ministry of Corporate Affairs, it takes about 90 days for striking off the Company from MCA records. On approval for strike-off by RoC, the notice of strike-off is published on its website to open for any objection or representations by third parties.

2018-07-30T14:57:53+05:30

Call us at: 1800 313 4151 or Email us: support@legalwiz.in

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Close a Private Limited Company