PVT LTD COMPANY
COMPANY CLOSURE
Happy businesses & Clients.
Partnered banks & Government Orgs.
India Registered
Google Ratings
Customer Satisfaction Guarantee
OVERVIEW
CLOSE A PVT LTD COMPANY
If the company’s owners or directors decide to close the business down, they may look into possibilities for closure. Striking a company’s name from the Registry of Companies is the most practical or simple approach to end a business. When a corporation lies dormant for a while, this is preferable. A Private Limited Corporation must be wound up with significantly greater difficulty. In accordance with Section 270 of the 2013 Companies Act, a company may be dissolved voluntarily or by a tribunal. Taxkey assists you about both closing processes and covers all the factors that must be taken into account when winding up a private limited company.
COMPULSORY COMPANY WINDING UP
TOP CAUSES FOR COMPULSORY COMPANY WINDING UP
- A private limited company is a business entity established legally in accordance with the Companies Act. Thus, a firm must maintain its regular compliances throughout its life cycle. A company will be fined and penalized for failing to file its compliances on time, and its directors will be prohibited from forming new businesses. A dormant corporation should be dissolved to prevent further fines or liabilities.
- Failure on the company's side to submit a necessary report to the registrar's office or begin operations within a year of incorporation
- The process of liquidation is utilized for a firm that is not operating and seeks to avoid compliance requirements. This is a discussion of some of the causes of company failure.
- The corporation passes a special resolution instructing the tribunal to dissolve the corporation.
- A private or public company's staff count has decreased by fewer than 2 or 7 employees or when the company is unable to pay its debts.
- The court made a just and equitable decision to dissolve the firm.
- For five straight fiscal years, the company has been unable to file its annual report or balance sheet.
- The corporation breached the country's sovereignty and integrity.
REQUIREMENTS FOR CLOSING A COMPANY
LIST OF REQUIREMENTS FOR CLOSING A COMPANY
- When a company wants to dissolve, the board should be consulted.
- The best course of action is to select an official liquidator or insolvency specialist.
- Concurrently, a NOC from the Income Tax Department should be requested.
- Within seven days of adopting the decision, a notification must be sent to the Insolvency and Bankruptcy Board of India (IBBI) before a winding-up case can begin.
- Within 12 months of the firm's liquidation procedure beginning, the entire winding up of the company process must be completed.
DOCUMENTS REQUIRED
DOCUMENTS REQUIRED FOR CLOSING A PRIVATE LIMITED COMPANY
Incorporation Documents
Certificate of Incorporation, PAN card, and other registration certificates, together with the Company’s MoA and AoA
Accounting Information
The most recent year’s financial statements for the company, prepared before 30 days have passed since the application was submitted
Details of Activity
Information on Activity Indicates how long the business has been in operation.
Legal Obligations
A statement about any active legal actions the corporation may be involved in.
NOC from Creditors and Regulatory Bodies
The business must get approval for closure from creditors if any, and approval from regulatory bodies, such as the Income Tax Department, SEBI, RBI, etc., as appropriate.
COMPANY DISSOLUTION
METHODS OF COMPANY DISSOLUTION
A private limited business can be wound up in one of two ways.
Voluntary firm dissolution
A special resolution or a resolution passed at a general body meeting can start a company’s voluntary winding up. The terms and conditions of the Memorandum of Association (MOA) may need to be fixed in order to require the winding up.
Compulsory winding up
A particular resolution by the directors requesting a judicial intervention may be passed during the firm’s board meeting in order to carry out the compulsory winding up of a company at the direction of a tribunal or a court. Similarly, if any official files a petition with a court or a tribunal or engages in any illegal or fraudulent action, the corporation must be made to dissolve.
PRIVATE LIMITED COMPANY
BENEFITS OF CLOSING A PRIVATE LIMITED COMPANY
- After the liquidation procedure is complete, directors and all other firm employees are free of all debts and are no longer subject to demands from creditors.
- If the resolution is accepted voluntarily, the directors will overlook any legal action taken by the court or tribunal, allowing them to concentrate on other business opportunities.
- Due to fees associated with the sale of assets, the costs or charges related to the liquidation process are relatively minimal.
- Every lease of the company signed for a specific amount of time will be cancelled, together with all its terms and conditions, during the liquidation process. A penalty will be deducted from the sale of the asset’s proceeds if a penalty is owed.
- After a protracted legal battle, creditors will gain from the liquidation process since they will be qualified for a default payment with respect to the proposition of credits provided by all creditors.
We provide expert advice for all size businesses.
Get expert financial advice and personalized consulting to grow your business. Our team of experienced professionals is committed to your success, no matter the size or stage of your enterprise. Let us help you reach your full potential.
How it works
Easy Step Process
We offer consulting services to businesses. Our experts help you achieve your financial goals.
Simplify your finances with TaxKey Accounting's seamless online platform. From registration to personalized financial plans, we're your trusted partner every step of the way.
Experience convenience with our streamlined delivery process. From order to doorstep, we ensure your items reach you swiftly and securely
Need more help?
Testimonials
Our Clients' Reviews
