Close a Private Limited Company

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Closure of a Private limited company

If the corporate owners or directors plan to discontinue or finish up the business, they’ll consider the choices of the closure. The most feasible or easiest method to shut a corporation is striking off its name from the Register of Companies. this is often preferable when a corporation is inoperative for a particular period. Other options include a winding-up petition, however, that involves longer, investment and compliance.

On approval of the cross off, the company’s name is far away from the register and thus, it’s not existent within the eyes of laws. the corporate must fulfill all the compliance before proceeding for the strike-off application. the appliance is amid 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 corporate is within the operative stage and has assets and liabilities. it’ll 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 entire process. it’s often a time-consuming process.
  • Striking off: Striking off is preferred by a corporation that has relatively no or less outside liabilities. When a corporation is inoperative since its inception or within the past two years, it’s going to apply for strike-off, often referred to as fast-track exit. the first condition is that the corporate has no assets or liabilities and has complied with relevant applicable provisions.

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