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 experts)
NOC from Regulatory Bodies
NoC for closure to be obtained from Income Tax Department, SEBI, RBI, etc. if relevant

Need assistance? Don’t worry, experts are here to help!
Call us at: +91 9729-443-137 or Email us: info@gameoftaxes.in

Close business in 3 Easy Steps

  • Spare less than 15 minutes to fill in our Questionnaires
  • Provide basic details & documents required for closure
  • Make payment through secured payment gateways
  • Assigned Relationship Manager
  • Drafting of necessary resolutions
  • Drafting of affidavit & indemnity bond
  • Preparation of other necessary documents
  • Filing of Strike-off application with MCA

All it takes is 20 working days*

*Subject to Government Processing Time

Process to dissolve a private limited company

  • Discussion and collection of basic Information
  • Provide required documents
  • 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
  • Preparation of applications for online filing
  • Filing of required forms and documents with MCA
  • Application for the striking-off company name
  • 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

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.
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.
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
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.
When can a company be said to be dissolved?
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.
What is the time limit to file the closure documents with the Registrar?
The closing documents have to be filed within 30 days from the date of signing of the assets and liabilities statement.
Why is it necessary to intimate the Registrar for closing the Private Limited Company?
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.
What is dissolving a company under fast track exit from MCA?
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.
Can I restore my company back after its struck off the register?
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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