How to Close Pvt Comapny

24 February 2023

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Everyone

What are the general steps involved in legally closing a company in Indian Companies Act 2013 ?

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4 Replies

Ayush (Executive ) (6985 Points)
Replied 24 February 2023

The general steps involved in legally closing a company in Indian Companies Act 2013 are:

Board Resolution: The company's board of directors must pass a resolution to initiate the process of closing the company.
Shareholder Approval: A special resolution must be passed by the shareholders to confirm the decision to close the company.
Liquidator Appointment: A liquidator must be appointed to manage the winding up process.
Creditors' Meeting: The company must hold a meeting with its creditors to inform them of the decision to wind up and to obtain their approval.
Asset Valuation: The liquidator must prepare an inventory and valuation report of all the assets and liabilities of the company.
Payment of Debts: The company must pay all its debts and liabilities in full, or make adequate provision for the same.
Distribute Assets: After paying all debts, the company's remaining assets must be distributed among the shareholders in proportion to their shareholding.
Intimation to ROC: The company must file an application with the Registrar of Companies (ROC) to strike off the name of the company from the register of companies.
ROC Approval: The ROC will scrutinize the application and if found in order, will issue an order to strike off the name of the company from the register of companies.
Final Compliance: After receiving the order from the ROC, the company must make a final compliance filing, notifying the ROC that all formalities have been completed and the company has been closed.