Closing of Company

Let us wind up.

Close the chapter, so that the books (of accounts) never gets opened again.

Benefits

Peace of mind, ultimately.

  • There are no further administrative requirements once your company has been closed
  • Voluntary dissolution is a quick and inexpensive method of closure.
  • closing company down completely removes it from the Companies House register and allows you to move on.
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Procedure

Submission of papers and then some time to cool down.

  • Arranging the Documents
  • Close the bank account if available and arrange to provide closure certificate.
  • To Get NIL statement of accounts from CA and prepare documents as needed to be attached for filing.
  • Filing of a  Form MGT-14 & STK 2 with the Registrar of Companies within thirty  days from date of passing a special resolution for the closure of private limited company.
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Documents required

NOCs, Permissions, returns etc.

  • Incorporation Documents
  • Accounting Information
  • Details of Activity
  • Legal Liabilities
  • NOC from Creditors
  • NOC from Regulatory Bodies
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Why LawDocs?

Opening or closing, same efficiency, same accuracy.

 

  • Legal experts to verify the documents
  • Business experts to make it a peaceful deal.
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FAQs

When a company is struck-off, this  is no longer allowed to trade or sell assets, and conduct any business activity.

If  directors of the company have been disqualified, EGM can be called to appoint a new director and the application shall be made to ROC with respect to such appointment.

Yes, the relevant Form for strike off is needed to be filed within 30 days from the date of passing a special resolution

No, under the  Companies Act there is no time limit for making an application under STK 2 for the closing of company.

company can be closed if 75% of shareholders are in favour of the decision. However, company cannot be closed by filing standard STK-2 if the dissenting person has above 25% stake in the company.

it is recommended and even mandatory to file all pending ROC returns and discharge all the duties before making an application for closing down the company in form STK-2

Total cost of closing a Pvt Ltd Company comprises of Stamp duty , Govt Fees and Professional Fees.

Yes, digital signature of at least one director will be required as the application needs be filed in the electronic format.

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.

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.

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

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.

RoC will publish a list of companies struck off in the Official Gazette. The Company under fast-track exit mode will be considered closed from the date of publication of the notice in Official Gazette.

The closing documents have to be filed within 30 days from the date of signing of the assets and liabilities statement.

It is necessary to intimate the Registrar for the closure of Private Limited Company to update the MCA data and make company free from all its legal compliances.

Fast Track Exit is a scheme introduced by the Ministry of Corporate Affairs (MCA) for inactive companies to wind up and get their names struck off from the MCA record with lesser formalities.

In case the company is struck off due to its default, then it would have to apply to the National Company Law Tribunal for changing the status of the company from strike off to active by giving valid reasons for the fault.

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