If you are running the business then you are definetly aware with the risks that are involved with the Company, and there are times when you need to close your Company because of several reasons like if any Fraudulent activity is happening within the premises. However if you are thinking of closing the company then there are 4 ways by which you can do so and they are as follows:
- Compulsory winding Up of the Company
- Voluntary Company
- Selling the Company
- Defunct Company Closing
Ways to wind up a Private Limited Company
- Compulsory winding Up the Company- If there is some Fraudulent activity going on in a company, then Tribunal asks the company for its closure and for closure following are the procedures:
- Firstly petition is to be filed by the Central or State Government or registrar of Companies, Company, Trade creditor.
- Then this Petition is attached together with the statement of affair of the Company.
- Then Form 11 is to be filled by the Company and the Company will have to surrender its assets, submitted all the audited books up to the date when company did their last transaction.
- Provide the date, time and place for the liquidator of the Company.
- If everything is in order then company will get dissolved in 60 days.
- Voluntary Closing- Now if your company is not making any profit and you want to close it down then you there is list of compliances that you need to follow and they are as follows:-
- All the Directors should agree for the closure of the company.
- A special resolution is need to be passed where 3/4th of the Directors needs to be agree.
- Trade creditors should also agree with the same and for that insolvency declaration has to be made by the Company.
- Then finally a liquidator is appointed to see that all your assets, liabilities and capital reserves are reported properly.
- Selling the Company- This is another way for closing of the Company i.e. if any company has transferred majority of its share to someone else, and by doing this stakes of the company is transferred to someone else.
- Closing a Defunct Company- A Defunct Company gets the status of the Dormant Company. This Company can be closed down using a fast track process. This can be done by filing of the form STK-2.
Firstly form has to be filled and submitted to the Registrar of Companies. However the Defunct Company should be without any liability, they should not be having any business after incorporation of the company, and have not functioning one year prior to filing the Application of Fast Track Scheme.