Closing Private Limited Company in India

A Private Limited Company or famously known as PVT LTD, is a privately held company. This implies that the business limits owner liability to its shares and limits the number of shareholders to 50. It also restricts shareholders from trading shares publicly.

Why does one close their Private Limited Company?

Closing a Private Limited Company becomes necessary for many reasons, voluntarily or by the Tribunal. The following are some of the reasons why closing the Company in India becomes the only option:

• Business Loss
• Bankruptcy
• Passing away of Promoters, etc.

Registrationwala provides thorough services during this difficult transition of closing a Private Limited Company in India.

Eligibility Criteria for Closing Private Limited Company in India

Voluntarily Closure of a Private Limited Company

This is possible if,

• The Company wants to close the operations by passing a special resolution. Simply put, the choice to strike off the Company is taken deliberately.
• As mentioned in the articles of association, there is an occurrence of an event that requires the shutdown of a Private Limited Company.
• The Company's duration expires, if any, as fixed in the articles of association. In this case, the process of winding up a company is voluntarily initiated.

Compulsory Closure of a Private Limited Company

This happens in the following scenarios:

• The Company is unable to pay its debts. At that time strike-off of the Company and liquidation happen in tandem.
• Tribunal orders the Company to be shut down or thinks that the Company is equitable and must be shut down
• When the Company has not filed financial statements or annual returns in the preceding five consecutive years
• The Company has acted against the sovereignty and integrity of the state and India, friendly relations with foreign states, public order, decency or morality
• If the Company has been conducted in fraudulent manners or is guilty of fraud or misconduct

Documents Required for filing Closing Private Limited Company

The following documents are to be submitted to close a Private Limited Company.

• Application for Striking off of the Private Limited Person Company – The Company that wishes to close must file a closing application with the Registrar
• Board Resolution for closure – The Private Limited Company must submit the resolution of closing approved by the board members
• Consent of Directors – A letter of consent from the Directors stating their opinion to close the Private Limited Company must be submitted.
• Director's Affidavit
• Indemnity Bond
• Statement of Assets and Liabilities – A financial statement indicating the sale of assets and cleared debts must be submitted

Process for filing Closing Private Limited Company 

The strike-off company procedure used to be a slow and boring process. However, many of the slow elements are removed through the online process. That said, the process to strike off Company online is not fully present. The process itself is as follows. :

Board Resolution

A board meeting is held where at least two Directors must be present, preferably a majority of Directors. The Directors approve the closing of the Company, having cleared all its debts, and then pass a resolution.

General Meeting

Following the board meeting, an issue is passed to call for the Company's general meeting. The General Meeting Board must pass the closing of the Company resolution by ordinary majority or a special resolution by 3/4th. Once the resolution is passed, the closing of the Company commences.

Creditor Meeting

At least 2/3rd of the creditor value must be of the opinion that the Company's closing is in the best interest of all parties.

Notice-Filing

File a notice with Registrar after 10 days of passing of the resolution to appoint a liquidator

Official Circulation

Within 14 days of the resolution passing, notify the Official Gazette and advertise in the newspaper regarding closing the Private Limited Company.

Filing Disclosures

File the certified copies of resolutions and general meeting regarding the closing of the Company within 30 days of the General Meeting

Final General Meeting

A final meeting is to be held to dispose of the books and papers of the Company.

Dissolution

Within 14 days of the Final General Meeting, file a copy of the accounts and application to dissolute the Company.

Tribunal Order

Once the Tribunal is satisfied with the copies and application, it will pass an order to dissolute the Company within 60 days of receiving the application

Publish Notice

On receiving the order from Tribunal, the appointed liquidator files a copy to the Registrar. The Registrar then publishes a notice that the Private Limited Company is now dissolved, which means it closed.

While you cannot fully strike a company off online, you can take all the help you need from business registration experts. These experts can close a Private Limited Company through a process that involves constant tenacity and complete Assistance.

Our Assistance to file the Closing Private Limited Company

We, at Registrationwala provide end to end solutions for filing Closing Private Limited Company. Our services include:

• Collection of information and starting the process
• Creating the first compliance draft
• Reviewing the draft and making changes if necessary
• Providing you the confirmation receipt.

Registrationwala.com is a leading legal consultancy firm providing the comprehensive services relating to Closing Private Limited Company.

Contact us now to for winding up Private Limited Company in India. 

FAQs

Q. How to close a Pvt Ltd company in India?

A. To close a Pvt Ltd Company in India, refer to the process section of this web page. We have briefed you on every aspect of the Private Limited Company closure procedure in India. To know more about the PLC closing procedure, connect with the Incorporation experts at Registrationwala. Our seasoned professionals will detail every aspect of the Private Limited Company closure procedure in India. Visit site:www.registrationwala.com to know more.

Q. Explain the Private Limited Company closure procedure.

A. To know the Private Limited Company closure procedure, refer to the process section of this web page. We have briefed you on every aspect of the in India. To know more about the PLC closing procedure, connect with the Incorporation experts at Registrationwala. Our seasoned professionals will detail every aspect of the Private Limited Company closure procedure in India. Visit site:www.registrationwala.com to know more.

Q. What is the PVT LTD closing charges in India?

A. To know the Pvt Ltd Company closing charges, connect with the Incorporation experts at Registrationwala. Our seasoned professionals will detail every aspect of the Private Limited Company closure procedure in India. Visit site:www.registrationwala.com to know more.

Q. How to close a Private Limited Company in India?

A. To shut down a private limited company, refer to the process section of this web page. We have briefed you on every aspect of the in India. To know more about the PLC closing procedure, connect with the Incorporation experts at Registrationwala. Our seasoned professionals will detail every aspect of the Private Limited Company closure procedure in India. Visit site:www.registrationwala.com to know more.

Q. Enlist the required eligibility for the company closure procedure in India.

A. To close a Private Limited Company, we must tick off the following eligibilities:

• The Company wants to close the operations by passing a special resolution. Simply put, the choice to strike off the Company is taken deliberately.
• As mentioned in the articles of association, there is an occurrence of an event that requires the shutdown of a Private Limited Company.
• The Company's duration expires, if any, as fixed in the articles of association. In this case, the process of winding up a company is voluntarily initiated.

Q. What is the required documentation for the Company Closing process?

A. The following documents are to be submitted to close a Private Limited Company.

• Application for Striking off of the Private Limited Person Company – The Company that wishes to close must file a closing application with the Registrar
• Board Resolution for closure – The Private Limited Company must submit the resolution of closing approved by the board members
• Consent of Directors – A letter of consent from the Directors stating their opinion to close the Private Limited Company must be submitted.
• Director's Affidavit
• Indemnity Bond
• Statement of Assets and Liabilities – A financial statement indicating the sale of assets and cleared debts must be submitted

Q. What are the Pvt Ltd Company closure charges?

A. To know the requisite for the closure of a company, connect with the Incorporation experts at Registrationwala. Our seasoned professionals will detail every aspect of the Private Limited Company closure procedure in India. Visit site:www.registrationwala.com to know more.

Q. How do you close a company?

A. For closing a company online, refer to the process section of this web page. We have briefed you on every aspect of the in India. To know more about the PLC closing procedure, connect with the Incorporation experts at Registrationwala. Our seasoned professionals will detail every aspect of the Private Limited Company closure procedure in India. Visit site:www.registrationwala.com to know more.

Q. I want to close my Company. What is the requisite procedure?

A. To know how to close your Company, refer to the process section of this web page. We have briefed you on every aspect of the in India. To know more about the PLC closing procedure, connect with the Incorporation experts at Registrationwala. Our seasoned professionals will detail every aspect of the Private Limited Company closure procedure in India. Visit site:www.registrationwala.com to know more.

Q. What is the compulsory closure in winding up a Private Limited Company?

A. For compulsory closure of a Private Limited Company, the following scenarios must be undertaken:

• The Company is unable to pay its debts. At that time strike-off of the Company and liquidation happen in tandem.
• Tribunal orders the Company to be shut down or thinks that the Company is equitable and must be shut down
• When the Company has not filed financial statements or annual returns in the preceding five consecutive years
• The Company has acted against the sovereignty and integrity of the state and India, friendly relations with foreign states, public order, decency or morality
• If the Company has been conducted in fraudulent manners or is guilty of fraud or misconduct

Q. Is the Board Resolution necessary for the closure of a Limited Company?

A. Yes. A board meeting must be held by the Company where at least two Directors must be present, preferably a majority of Directors. The Directors approve the closing of the Company, having cleared all its debts, and then pass a resolution.

Q. How to close a Limited Company online in India?

A. To close a Limited Company online, refer to the process section of this web page. We have briefed you on every aspect of the in India. To know more about the PLC closing procedure, connect with the Incorporation experts at Registrationwala. Our seasoned professionals will detail every aspect of the Private Limited Company closure procedure in India. Visit site:www.registrationwala.com to know more.

Q. What is a Private Limited Company in India?

A. A Private Limited Company or famously known as PVT LTD, is a privately held company. This implies that the business limits owner liability to its shares and limits the number of shareholders to 50. It also restricts shareholders from trading shares publicly.

Q. How to strike off a private limited company with legal aid?

A. To strike off a Private Limited Company in India, refer to the process section of this web page. We have briefed you on every aspect of the in India. To know more about the PLC closing procedure, connect with the Incorporation experts at Registrationwala. Our seasoned professionals will detail every aspect of the Private Limited Company closure procedure in India. Visit site:www.registrationwala.com to know more.

Q. How can the Registrationwala help you in cancelling a company's registration?

A. Registrationwalas provides an end-to-end solution for filing Closing Private Limited Companies. Our services include:

• Collection of information and starting the process
• Creating the first compliance draft
• Reviewing the draft and making changes if necessary
• Providing you with the confirmation receipt

We are a leading Legal Consultancy Firm providing comprehensive services relating to Closing Private Limited Companies.