Close Your Private Limited Company

Starting From Rs.14899

All inclusive price

The Companies Act of 2013 outlined the steps for winding up a defunct corporation. A fast-track method that involves the submission of the STK-2 form can be used to wind up a defunct or dormant company. As a result, in order to wind up a Defunct Company, Form STK-2 is necessary, and there is no further procedure. The Registrar of Companies must be contacted, and the form STK-2 must be completed and signed by a director of the business who has been authorised by the board of directors to do so.

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WINDING UP A PRIVATE LIMITED COMPANY

Winding up a private limited company is a tedious, but necessary, procedure. Without doing so, you would need to annually meet the requirements of the Registrar of Companies (which means spending money on audit and compliances). The bigger reason you would want to do this, of course, is because it releases the assets and investments made by you.

WHAT IT INVOLVES

Public Accountant
A public accountant would be appointed by the court as a liquidator. The powers of the directors would devolve upon this person and he would be primarily responsible for accumulating all the assets of the company and paying off its debts. The surplus would then be distributed among the members.

Documents Required
A statement of account has to be prepared, stating that there are no assets and liabilities except share capital and profit and loss debit balance. An affidavit and indemnity needs to be executed by all directors. If there is any unsecured loan, a waiver letter should be submitted.

PROCEDURE FOR WINDING UP

) Sending the target firm a written demand for debt repayment.

b) File a petition with the court and the corporation to wind up the business.
c) The petition will be heard in court.
d) The court issues a winding-up order;
e) A meeting of creditors and other interested parties is held.
g) Liquidator is appointed.
g) Realization and distribution of the company’s assets to creditors h) Realization of liquidator’s tasks I Company dissolution

The Companies Act of 2013, Section 248(2), and the Companies (Removal of Names of Companies from the Register of Companies) Rules outline a thorough procedure for closing a dead or inactive business. The steps for closing a business are outlined here.

Calling of EGM of the shareholders

Step – 1: Calling of EGM of the shareholders

A meeting of the company’s shareholders with at least 75 percent voting rights must be summoned in order to file the application in STK-2 Form for Company Closure with the ROC.

Surrender of Registration & Licenses

Step – 2: Surrender of Registration & Licenses

Before the firm can file an application for liquidation, it must renounce any GST registrations or licences it may have acquired from any government department.

Bank A/c Closure & Prepare Financial Statement

Step – 3: Bank A/c Closure & Prepare Financial Statement

The company’s bank accounts must be closed, and a banker’s certificate is required. Make a financial statement that has no assets or liabilities. It must be certified by a Practicing CA or Auditor.

Affidavit & Indemnity Bond of All Directors

Step – 4: Affidavit & Indemnity Bond of All Directors

All directors and shareholders must sign an affidavit swearing that all information and papers filed are accurate and correct, as well as an indemnity bond promising to pay any responsibility in person if it arises.

Filing of STK-2 Form

Step – 5: Filing of STK-2 Form

Verify that the firm has submitted all outstanding ITRs and ROCs. Go back to the ROC. The firm closure application was filed electronically in Form STK-2 with a digital signature and a government fee of Rs. 10,000/-.

WHY VAKEELJI

4 BUSINESS DAYS
At Vakeelji, we can deliver all your documentation requirements in just four working days. And if you’re not totally satisfied, we’ll take another couple of days to work on the modifications you need. All at the lowest price, both online and offline.

9.1 CUSTOMER SCORE
We make your interaction with government as smooth as is possible by doing all the paperwork for you. We will also give you absolute clarity on the process to set realistic expectations.

160 STRONG TEAM
Our team of experienced business advisors are a phone call away, should you have any queries about the process. But we’ll try to ensure that your doubts are cleared before they even arise.

Documents required for closing of a company

All ITR and Returns Filed with ROC
Board Resolution Authorising the Closure
Affidavit from all the Directors
Indemnity Bond from all the Directors
Consent of 75% of Shareholder
Bank Closure Statement
CA Certified Statement of Accounts
Identity and Current Address Proof of partners

Reasons to Register a Company in India

Entrepreneurs choose to register a company due to various reasons. Two of the main reasons is that a company is a distinct legal entity having perpetual succession. Hence, a company is not affected by the death, insanity, or insolvency of an individual member. The following are some of the top reasons to register a private limited company in India.

Separate Legal Entity

As per Law, a company is an artificial judicial person established under the Companies Act. A company is a separate legal entity from its Directors and Shareholders. Hence, a company enjoys a wider legal capacity, to own property and incur debts – while the individual company members owe no liability towards the company’s creditors for debts.

Separate Legal Entity

What is the Price I Need to Pay for closing of a Company?

The Cost of Incorporation / Registration a Company would vary from INR 6899/- to INR 29899/- depending upon the plan you choose.

Pay as you go grow pricing

All Inclusive Pricing - No Hidden Fee

Basic

^₹ 6899 _{all inclusive fees}

2 Digital Signature - 2 Year Validity 1
2 Director Identification Numbers
Name Approval 2
Authorised Capital Fee 3
Incorporation Fee
Stamp Duty 4
PAN & TAN
LEDGERS Billing Software 5
Bank Account Opening
Commencement of Business

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Basic

^₹ 6899 _{all inclusive fees}

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Basic

^₹ 6899 _{all inclusive fees}

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Frequently Asked Questions

What options do I have for winding down an active business?

An active corporation can be closed by filing a closure application with the National Company Law Tribunal under the Insolvency and Bankruptcy Code 2016. (NCLT)

What are my choices for closing down a thriving business?

Under the Insolvency and Bankruptcy Code 2016, an active corporation can be closed by submitting a closure application with the National Company Law Tribunal. (NCLT)

Who has the authority to sign a company's winding-up petition?

The applicant’s digital signature is required when filing Form STK-2 (Application for Company Winding Up). The DSC of either a shareholder or a director, as approved by the shareholders at the EGM, might be used for signing purposes. A CA, CS, or CMA is also necessary to certify the STK-2 form.

Is a newspaper advertisement required when closing a business?

In the event of a voluntary or obligatory winding down before the NCLT, newspaper publication is required. Because the laws are silent on the striking off, we propose posting a newspaper notice as a precaution, even if the striking off application is filed

What should I do if another director or shareholder refuses to cooperate or cannot be located?

A firm can be closed by a majority resolution of 75 percent of the company’s stockholders. If the opposing party owns more than 25% of the firm, the company cannot be wound up using the STK-2 technique, often known as the voluntary way of winding up. Under IBC 2016, an application can be filed with the NCLT to close a corporation with disagreeing members.