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Closing of a private limited company

Ashwani (Self) (24 Points)

23 September 2014

Hi,

I have formed a company on 31 dec of 2013.

All Docs are completed,And The Company does'nt have any current account in the bank.

My Question is that,

1.I want to close that company as soon as possible.Can I do?

2.Should I have to fill any ITR or Audit the company before shutdown ?

3.I am not CA,What are the fines or penalties if would not fill ITR ?

Please Help

Regards

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3 Replies

Vandana J Doshi (Practising Company Secretary) (12562 Points)
Replied 23 September 2014

Hi, in my view, accounts have to be prepared and audited and further IT return will be required to be filed for the FY 13-14..... For closure of the company, you can opt for Fast Track Exit scheme. The details of the same will be available on the MCA website.

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Ajit Bhati (Chartered Accountant) (214 Points)
Replied 23 September 2014

In this case, Since the company is incorporated in Dec 2013, You can go for FTE mode as suggested by Vandana ji.

If there is No/NIL Transcation during the year and upto 31.3.2014. If Assets and Liabilites is NIL except for share capital. Then in my view

1.No need to file any ITR with IT Dept.

2. Pass a Board Resolution for closing of comapny atleat 6 months before close of FY

3. Affadivit from all the Director (Normally in 20 Rs Stamp paper.)

4. Indemnity Bond to be signed by All the Director (Normally in 100 Rs Stamp paper.)

5. Statement of Accounts certified by CA

Bharat Bhushan (10 Points)
Replied 16 January 2025

Hello,

To close a private limited company in India, you need to follow a systematic process to ensure compliance with the legal and regulatory requirements. Here's what you must follow as per your questions:

How to Close My Company ASAP?

The quickest way to close your company is through the Fast Track Exit (FTE) method if your company fulfills the criteria of being defunct or non-operational for a period of more than a year. Alternatively, you can opt for voluntary liquidation under the Insolvency and Bankruptcy Code (IBC) if you want to cease operations and settle outstanding liabilities. Both these methods require approval from shareholders, creditors, and, of course, regulatory authorities like the Registrar of Companies (ROC) and MCA.

Should I File ITR or Audit the Company Before Closing?

Yes, it is mandatory to clear all pending financial obligations. This includes filing the final Income Tax Return (ITR), completing any required audits, and ensuring there are no outstanding statutory dues like GST or TDS.

What are the Fines or Penalties if ITR is not filed?

Failure to file the ITR may result in penalties under the Income Tax Act, including late fees of up to ₹10,000 and additional interest on pending taxes. Frequent cases of non-compliance could also lead to prosecution.

If you want to close your private limited company in a shorter time span, do adhere to legal obligations as it can save you from unnecessary fines and penalties. For a smooth process of closing your company, adhere to proper documentation and seek professional assistance here: https://www.setindiabiz.com/winding-up-company