Closing Private Limited

If your business in the private limited company is not running properly or faces continuous losses, it is better to close such private limited company and look for a new beginning.

A private limited company needs to be closed or windup when there are no exchanges or the Directors of company are not willing to proceed its operations. A private limited company generally can be shut by both voluntary and compulsory circumstances.

REASONS LEADING TO CLOSURE OF COMPANY

Key Requirements

• Pass an ordinary resolution in Board of Directors meeting.
• There should be no business activity from the day when resolution is passed
• Declaration by members stating there is no debt pending on company and the required forms are filed

MINIMUM REQUIREMENTS FOR CLOSING PRIVATE LIMITED COMPANIES

• Atleast one year old from date of Incorporation.
• There is no business Activity for one year
• File a statement of Account annexed at Annexure C

REASONS LEADING TO CLOSURE OF COMPANY

• Directors’ willingness
• By Court order
• Default in holding statutory gathering or consistence with statute
• If members go underneath recommended number
• Company gets bankrupt
• Financial accounts are not submitted for 5 years