CLOSURE OF COMPANY

When can a company apply for closure of company:

  • The company has not commenced its business within 1 year of incorporation; or
  • the company is not carrying out any business or activity for preceding 2 financial years
  • the subscribers to the memorandum have not paid the subscription money and a declaration to this effect has not been filed within 180 days of its incorporation;

Conditions for closure of company:

  • Assets and Liabilities of the company as on the date of application shall be NIL. It shall pay of all its liabilities before making the application.
  • The current account of the company shall be closed.
  • The company shall file all its pending returns with the concerned authorities. (Income tax, ROC and other statutory liabilities)
  • The company is not carrying on any business or operation for a period of two immediately preceding financial year or if the company has not started any operations after incorporation.

List of documents required for closure of company:

  1. Statement of accounts by a Chartered Accountant.
  2. Bank certificate disclosing closure of the current account of the company.
  3. Latest copy of the Audited Balance Sheet and ITR Acknowledgement of the company.
  4. Self-attested copies of Id and Residence Proof of all the directors.
  5. Audited financial statements of last 2 financial years.
  6. Digital Signature of any one director for processing the application.

Process of closure of company:

  • Hold Board Meeting to discuss and decide for closure of company/ voluntary strike off .
  • Pay off all the liabilities of the company.
  • Conduct extra ordinary general meeting for passing special resolution for approval of members
  • File E-from MGT-14 within 30 days from the date of passing special resolution.
  • File STK-2 form alongwith following documents:
  • statement of accounts in form STK-8
  • affidavit in Form STK-4 by every director of the company
  • indemnity bond in STK-3 by all directors of the company
  • Special resolution passed by the company for approval of members
  • After application the Registrar of Companies will issue public notice in Form STK-6.
  • The Registrar of Companies will dissolve the company by issuing Form STK-7.

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