Closing of private limitedcompany

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SONIA DEVAL (Querist)
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11 May 2013 Dear Sir,
I wanted to know that how can I close a private limited company when it is unable to pay it's creditors which is also japanise company my company received total advance money balance remaining till 31/03/2013 Rs. 1.20 crores against this advance my co. has fixed assets of rs. 71 lacs. my co. is also a loss making co. since two years
pls tell me the best procedure to close this co. Can we repay advance money to japanise company without prejudiced to FEMA Act-1999
pls provide me the FEMA regulation regarding & RBI instruction regarding this matter.

Thanks with regards.

C.A Sonia Dval

CS VIKRAMSINH MOHITE

CS VIKRAMSINH MOHITE (Expert)
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11 May 2013 Hi Sonaia,

You can close the company as per the Fast Track Exit Scheme 2011. The main conditions are that the company should not be carrying on business for last one year, there should be no secured loans. You can repay the advance back to Japanese Company as per the FEMA procedures. It depends on the purpose for which the advance was taken and the conditions put by RBI if any.