Closure of company
TAXSAMADHAN-PROVIDING HANDHOLDING SERVICES FOR We make sure
that your company is closed smoothly and you are free to start a new journey.
Counselling and guiding on closure
Legal and Secretarial Services
Pre-closure activities and compliances
Appearances and Hearings
1) What is closure of company / LLP?
Closure of company / LLP
means to apply before the Ministry of Corporate Affairs for removing the name
of the entity from the register under the Registrar of Companies which upon
successful satisfaction may be granted by the Ministry.
2) Can I close my company at any point of time?
Yes, you can close a
company at any point of time subject to fulfilment of certain conditions as
specified by the Ministry of Corporate Affairs. The company should not be in
operations for atleast two preceding years and there are no litigation pending
against the company or the Directors and also there should not be any dues
3) I have been residing in USA since last few months and I
have a company in India, now I wish to close the company. Is it possible to
close the company?
Yes, it possible to apply
for closure of the company subject to fulfilment of necessary conditions.
However, certain declarations are required to be given the Directors of the
Company which should be stamped and notarized and this shall be possible when
you are back to India.
4) My company had revenue and expenses till the last month
but now I feel that due to some regulatory amendment the business shall not be
able to generate revenue anymore and I would like to close my company. Is it
possible to do so?
No, a company to apply
for closure has to remain inoperative for atleast two preceding years. Thus, in
this case, you cannot apply for closure. Further, the company should comply
with the necessary laws and requirement before applying for closure.
5) My company has been incorporated before five years,
however, we never commenced any business and the company remained idle for this
long. Can I apply for closure?
A company which was
incorporated before five years and has remained idle can apply for closure,
however, the company should have complied with the Annual Filings till last financial
year and the Directors associated with the Company should not have been
disqualified by the Ministry of Corporate Affairs.
6) Is dormant status of a company same as closure?
No, Dormancy is different
from Closure. In Dormancy, a company needs to file an annual return of dormancy
every year after the Ministry has approved the dormant status, however, a
company which has been closed need not comply with any other laws or regulations.
7) What are the points I should consider before applying for
The following points
should be kept in mind before applying for closure:
Company should not be
under any investigation / inspection There should be no pending prosecution in
the court of law Company should not have any outstanding deposit, or other dues
towards any financial institution / banks / Govt. bodies The directors should
not have been disqualified by the Ministry of Corporate Affairs There should
not be any stay order on the company where filings of documents have been
barred by the judicial / quasi-judicial bodies. The company should have closed
the bank accounts and should have procured a bank account closure certificate
from the bank in their letterhead.
8) I have a company which is in operations but as I was out
of India for some time and I could not comply with the Directors’ KYC and did
not file DIR-3 KYC. Can I still apply for closure?
No, a Company except an
OPC must have at least two Directors at any point of time. In any case, where
the company has two Directors and one of them has not filed DIR-3 KYC shall be
a disqualified director and the company under such circumstances shall not be
treated as a valid company and hence shall not be able to apply for closure unless
the necessary actions are being taken.
9) I started a company two years back with one of my friend
as another Director cum Shareholder and now we are not in talking terms. Can I
go ahead in closing the company?
To apply for closure of a
company, both the Directors shall give affidavit and indemnity bonds which
shall be stamped and notarized. Further, the company should have passed Board
Resolution approving the closure. So, if the necessary conditions are met, then
the closure may be applied.
10) How long does it take to close a company?
Once the form is filed
for closure, Ministry of Corporate Affairs shall scrutinize the form and
subject to satisfaction, the closure shall be approved which usually takes
around six to eight months.