Company Closure

Description

Closure of Business (having trouble, lets wrap up easily):-

To shut down a business operation, a due procedure is required to be follow.

• Application for striking off the name of company /LLP.
• Application for Voluntary Winding up of the Company.

Pre-Conditions for filing application of Strike off:

1. All liabilities must be extinguished.
2. Company has not been carrying on any business or operation for a period of two immediately preceding financial years.
3. Company has not made any application within such period for obtaining the status of a dormant company.
4. Prior approval: by special resolution or with the consent of seventy five per cent of the members in terms of paid up share capital required.
5. Prior approval: in the case of a company regulated under a special Act (i.e. RBI), approval of the regulatory body constituted or established under that Act.
6. Following documents to be prepared:-
   1. CTC of Board Resolution.
   2. Notice and explanatory statement of EGM.

• CTC of Special Resolution passed by members in EGM.

1. STK-3: Indemnity Bond.
2. STK-4: Affidavit.
3. STK-8: Statement of Accounts.

• Approval from the regulatory authority under which company regulated.

Procedure for filing application for strike off of the name of the company from the register of companies

• Conduct a Board Meeting U/s 173 for calling an EGM and pass a board resolution to that effect.
• Issue a Notice for calling EGM.
• Take approval the requisite special resolution or with the consent of seventy five per cent of the members in terms of paid up share capital required.
• Prepare STK-3: Indemnity Bond, STK-4: Affidavit, STK-8: Statement of Accounts
• File an application in E-form STK-2 with Registrar of Companies suo-motto.
• Registrar shall, on receipt of such application, cause a public notice to be issued in the prescribed manner.
• After due procedure, the name of the company get struck off from the records of the registrar of companies.