Closure of Private Limited company - Overview
Ministry of Corporate Affairs has launched the rules and regulations 2020 to ease up the process for Closure up of Private Limited Company Online without having to go to a judicature. This process an alternative to the normally used liquidation process according to the Indias bankruptcy code
Any private limited company can wind up both 'voluntary' and 'compulsory elements. Winding up of a Private limited company involves bargaining all the assets, paying off the bankers and distributing the remaining properties or assets to the shareholders of the private limited company. The scope of Company Law in India is extensive and also unrestricted. It carries up to the depth of winding up of a business and liquidation of its assets. Representatives can get held civilly or criminally liable, if they fail to comply the laws and regulation while winding up the company.
Advantages of Closure Up of Company Released from duties/debts after liquidation Withdrawing legal action upon the company low cost required for liquidation Protection for investors
Documents Required For Registration
- Ultimately ITR and Returns Filed with ROC
- Form Comp 1 for Closure up petition
- Form Comp 2 for Declaration of truth
- Form Comp 3 for Certification of service
- Closure up petition
- A list of people inspecting the hearing: Form Comp 4
- Preparation of Preliminary Report by IP
- Submission of Proof of Claim in Form B, in Form C, Form E, Form D, Form F, by Electronic means or through the post
- PAN Card of the company
- Declaration of the termination of the companys bank account with NIL contracts
- An indemnity bond, which should be notarized by the directors
- Latest bank statement of accounts of the company
- Application for extracting the name of the company
- Indemnity Bond of all the Directors of the company
- Statement of reports related to all assets and liabilities of the company, audited by Chartered Accountant
Process To Register
- Appointment of an Official Liquidator
- Sale of assets and properties
- Payments to Investors or creditors
- Winding up order
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