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Winding up a private limited company

Rohit (Student) (37 Points)

17 October 2016

Is there any other way to wind up a private limited company than the FTE mode? If yes then how soon the company could be closed? The ITR and Audit for FY 2015-16 has not been done. Could the process be faster if the the company made less than 10 Lac in the given year and it has just 2 directors?

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6 Replies

Pratik Shah (Practising Company Secretary) (4432 Points)
Replied 18 October 2016

FTE is the fastest and convenient way to close a Company if conditions mentioned in Circular are fulfilled.

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Rohit (Student) (37 Points)
Replied 29 December 2016

Thanks for the reply and the information Pratik :)

Rohit (Student) (37 Points)
Replied 29 December 2016

Thanks for the reply and the information Pratik :)

Rohit (Student) (37 Points)
Replied 29 December 2016

Thanks for the reply and the information Pratik :)

(Guest)

I had incorporated a pvt ltd company a month ago, hasn't yet alloted any money to bank account. Now, due to my financial problems and pressure of studies, I don't think that I will be able to do any business operation. Is there any way to go for voluntary winding-up right now? Note, just one and a half months have passed since incorporation.

So, my questions are:

1. Can I opt for voluntary winding-up now?

2. If I opt for voluntary winding-up now, would I need to file all the tax filings and other annual compliances, while the winding-up procedure is running?

3. What is the estimated time-frame of the voluntary winding-up process? (Please note, the paid-up capital of the pvt ltd is only 10000 Rs.)

I know about fast track exit. But, I want to know if there is any way to wind it up now, since you have to wait for 1 year to do Fast track exit. It will be very helpful if you can provide some valuable information. Thank you.

Also, if a director puts the 10000 rs share capital in the bank a/c, and then 1000 more for the bank costs, is that a liability? Note, no third-party transaction taking place, no business operation

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Pratik Shah (Practising Company Secretary) (4432 Points)
Replied 03 January 2017

FTE has another condition that if company does not have any business transaction since incorporation, then also company can go for FTE. You do not need to wait for 1 year to pass from incorporation.

However, recently new procedure has come up. You need to first check if you can still apply with FTE or not.

Voluntary winding up is not so easy. It has lengthy procedure and it will cost you a lot. It is better to go with FTE (not need to wait for one year), if it is still available. Else, wait for new for STK-2 which is replacement of FTE.