Closure of a Private limited company
Close 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
- 1
Day 1 - 2
Discussion and collection of basic Information · Provide required documents
- 2
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
- 3
Day 9 - 15
Preparation of applications for online filing · Filing of required forms and documents with MCA · Application for the striking-off company name
- 4
Day 16 onwards
Government processing time to approve strike-off · The notice of strike-off to be published by MCA after approval
FaQ
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.
Closing a dormant company helps you:Save on yearly compliance costsAvoid non‑compliance risksPrevent penalties and prosecutionsEliminate default risks
Yes. The Registrar may remove a company’s name if:It hasn’t commenced business within one year of incorporation; orIt hasn’t conducted any operations for the past two financial years and hasn’t applied to be dormant.
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.
It’s required so the Registrar can update MCA data and relieve the company from all ongoing legal compliance obligations.
Closure documents must be filed within 30 days from the date of signing the statement of assets and liabilities.
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.
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.
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