Close a Private Limited Company

Closure of a Private Limited Company

Closure of a Private limited company

If the company owners or directors decide to discontinue or wind up the business, they may consider for the options of the closure. Most feasible or easiest way to close a company is striking off its name from Register of Companies. This is preferable when a company is inoperative for a certain period. Other options include a winding-up petition, however that involves more time, investment and compliance. On approval of the strike off, the company’s name is removed from the register and thus, it is not existent in the eyes of laws. The company must fulfill all the compliance before proceeding for the strike-off application. The application is accompanied by various documents and requires assistance from the professional.

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Ways of winding up of a company in India

Winding up

This option is preferred when the company is in the operative stage and has assets and liabilities. It will include approval from Members, Directors, and creditors. It also requires appointing a liquidator for the said process to manage the company’s affairs during the whole process. It is often time-consuming process.

Striking off

Striking off is preferred by a company which has relatively no or less outside liabilities. When a company is inoperative since its inception or in the past two years, it may apply for strike-off, often referred as fast-track exit. The primary condition is that the company has no assets or liabilities and has complied with relevant applicable provisions.

Documents required for strike-off of company

Incorporation Documents

Company’s MoA – AoA, Certificate of Incorporation, PAN card and other registration certificates

Accounting Information

The financial statement of the Company for the most recent year, prepared prior to 30 days of filing the application

Details of Activity

Details whether the company has been operative for any period. If yes, since when the operations are discontinued

Legal Liabilities

A statement regarding pending litigations, if any involving the company

NOC from Creditors

The company must provide NOC for closure from creditors, if any

NOC from Regulatory Bodies

NoC for closure to be obtained from Income Tax Department, SEBI, RBI, etc. if relevant

Close business in 3 Easy Steps

Step 01

Answer Quick Questions

Spare less than 15 minutes to fill in our Questionnaires
Provide basic details & documents required for closure
Make payment through secured payment gateways

Step 02

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Assigned Relationship Manager
Drafting of necessary resolutions
Drafting of affidavit & indemnity bond
Preparation of other necessary documents
Filing of Strike-off application with MCA

Step 03

Closure application is filed

All it takes is 20 working days*

*Subject to Government processing time

Process to dissolve a private limited company

Day 1 - 2

Discussion and collection of basic Information
Provide required documents

Day 3 - 8

Review of the details and documents furnished
Drafting of necessary resolutions
Drafting of the affidavit, indemnity bond, and other documents
Provide duly executed affidavit & indemnity bond
Provide signed documents after review

Day 9 - 15

Preparation of applications for online filing
Filing of required forms and documents with MCA
Application for the striking-off company name

Day 16 onwards

Government processing time to approve strike-off
The notice of strike-off to be published by MCA after approval

FaQ

1. When can an application for strike-off be filed?

It can be filed only when the company has repaid or extinguished all its liabilities and received a No Objection Certificate (NOC) from creditors. Additionally, a meeting must be held where all directors pass a special resolution, or at least 75% of members (by paid‑up share capital) consent to the closure.

2. What are the benefits of closing a private limited company?

Closing a dormant company helps you:

Save on yearly compliance costs
Avoid non‑compliance risks
Prevent penalties and prosecutions
Eliminate default risks

3. Can the Registrar of Companies also initiate strike-off?

Yes. The Registrar may remove a company’s name if:

It hasn’t commenced business within one year of incorporation; or
It hasn’t conducted any operations for the past two financial years and hasn’t applied to be dormant.

4. How long does a company take to be dissolved under the fast-track exit scheme?

After the application is filed with the Ministry of Corporate Affairs, it typically takes about 90 days for the company to be struck off. Upon approval, a notice is published allowing third-party objections.

5. Why is it necessary to intimate the Registrar when closing a private limited company?

It’s required so the Registrar can update MCA data and relieve the company from all ongoing legal compliance obligations.

6. What is the time limit to file closure documents with the Registrar?

Closure documents must be filed within 30 days from the date of signing the statement of assets and liabilities.

7. Can I restore my company after it’s struck off the register?

Yes—if a company is struck off due to default, you can apply to the National Company Law Tribunal (NCLT) to restore its status by providing valid reasons for the default.

8. What does “dissolving a company under the fast-track exit scheme” mean?

Fast Track Exit is an MCA scheme for inactive companies, enabling them to wind up and have their names stricken off the register with fewer formalities.