Closing Private Limited Company

Striking off the name of a company is an alternative mechanism for Closing Private Limited Company or closing the operations of the company. The Registrar of Companies (‘ROC’) can issue a notice to strike off the company name from the Register of Companies for certain reasons. The company can also apply for the ROC to strike off its name from the Register of Companies.

If your business is not running then the same can be wound up under the law. Closing A Company could happen owing to many reasons. For closing a private limited company, there can be various internal to external factors. Such as low working capital, voluntary closing business, government policies, and so on.

The provisions of the Companies Act, 2013 govern the striking-off Company. For winding up private company under MCA, you have to file an e-form STK-2. The government fee for the form is Rs 10,000/-. All ROC compliances are mandatory before filing any company closure application. For any closing application, the company should be one year older. That means only after one year of incorporation, the company can be wound up under the law. Also, at least two years should lapse before the last business transaction.

In the Company closure application, Directors need to file affidavits and indemnity bonds. There should not be any liabilities outstanding in the name of the Company. The name of the Company publishes in the gazette for creditor’s/third-party comments. If no objections are received during such time, the closure gets department approval.