Overview - Winding up or Closing of Defunct Company
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Closing of Defunct Company
Once registered with the Registrar of Companies (ROC), Ministry of Corporate Affairs (MCA), it is mandatory for the Company to file the regular returns with Registrar of Companies and other statutory authorities in time.
If the Company is defaulted in filing of regular returns with the Registrar of Companies, the Company and its Director are liable to face the penalties and prosecution process as per Companies Act 2013 also, the companies are liable for winding up by Registrar of Companies.
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.
There is no relaxation for compliance filing even if ‘Company is Not carrying any Business’. So, it is very important to ensure the filing in time or removal of Company’s name from the Registrar of Companies to avoid penalties and prosecution process.
The Following Companies can make application strike off its name from the register of companies as a Defunct Company.
- Companies that are not started any business within one year of its incorporation
- Companies that are not carrying on any business or operation for a period of two immediately preceding financial years
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Company Closing - Requirements
Documentation of Closure of Company
File Closing Application
Procedure for Winding up of Defunct Company
Based on the information, closure application alone with indiminay board and affidavit prepared.
File Closure Application
After execution of documents, closure application is filed with MCA. Usually after 6 to 8 months MCA approve application and company name will be published for final closing
After the publication of name for closing of company by MCA, company will be closed and status of the company will change to strike off
Bank Statement and Filing
Close bank accounts and obtain closure certificate from bank. Also organize last year filings
- Bank Statement
- Last Year filing documents
Winding up of Defunct Company
A company can apply for closure if all assets extinguished and with the consent of shareholders holding 75% shares in the company
Before making application, all bank account opened in the name of the company stand closed.
All liabilities must be settled or waver certificate must be obtained from liability holders