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Company Closure

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It is mandatory for a company to file the regular returns with Registrar of Companies and other statutory authorities in time.

If the company is inoperative for two years must file an application with Registrar of Companies to obtain the dormant company status if the promoters are planning to keep the company alive for future business in it.

If the promoters are not intending to keep the company alive, they can file an application for closure of the company by removing its name from the register of the companies maintained by MCA.

Company Closing Service

We offer company closing services to all companies which are in-operative for minimum two years. At the time of filing for closure, company does not have any assets or  liabilities. 

To know more information about our company closure service, please fill above form.

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Closing a defund company?

Duly completed application need to be field in Form STK-2 digitally or physically signed by the director of the company authorised for this purpose.

The application need to be certified by a Company Secretary or Chartered Accountant or Cost Accountant in whole time practice.

What action will be taken by the Registrar after filing the application

  • The registrar shall verify the application and if it is in order
    • Publish a notice in official gazette
    • Public notice to be published at least once in English and Vernacular language newspaper
    • Send notice of intimation to other regulatory authorities such as Income Tax, Sales Tax, Service Tax etc. having jurisdiction over the company and if no objection is not received from the concerned authorities within 30 days from the date of notice it shall be presumed that they have no objection for the proposed action of strike off the name.

Final Striking off the name of the company

Once all the procedures completed, the registrar shall publish a notice in prescribed format in the Official Gazette and dissolve the company.

The following types of companies are not allowed to file the closure application under this provision;

  • Listed Companies
  • Companies that has been delisted due to non-compliance of listing regulation or listing agreement or any other statutory laws
  • Vanishing companies (The company which is listed and which is in default in filing return with Registrar of companies or SEBI for two years or it is not maintaining the registered office or none of its directors are traceable)
  • Companies where inspection or investigation is ordered and being carried out or such other order are yet to be taken up or completed but prosecutions arising out of such inspection or investigation is pending in the court
  • The companies to which the notice for inspection of books has been issued by the registrar or inspector and the reply, report, prosecution etc. is pending
  • Companies against which any prosecution for an offence has been pending in any court
  • Any compounding application is pending before any competent authority
  • Companies which has accepted public deposit and which is either outstanding or company is in default of repayment of the same.
  • Company having charges which is not satisfied
  • Non-profit company registered under this act or earlier act.

Eligibility for Closing a Company

Company in-operative for last two years and does not have any assets or liability for close as defund company

Time required for closing

One a company filed all documents, registrar will process and close the company. Usually it may take one year.

Who can file for closing a company.

To close a company as defund company consent of minimum 75% of shareholders required and application need signature of all directors.

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