9/25/2017 ☆ What Is the Procedure to Winding-up Company in India?

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7 Answers
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Omvir Singh, Intern at Wazzeer - Handpicked Lawyers and Accountants in the What is the procedure and what are the costs?
cloud
What is the quick and easy way to wind up a company
Answered Jul 8
according to the Companies Act 2013?
Under Companies Act 2013, a Company can be closed in two ways.
What is the procedure to reduce the no. of directors of
1. Winding Up a company registered in India?

Winding up is a tedious process and can be done either voluntary by calling up a meeting of What is the procedure to set up a publicly limited IT
all stakeholders and passing a special resolution or can be done on the order of Court or company in India?
Tribunal. Strike Off” mode was introduced by the MCA to give the opportunity to the
defunct companies to get their names struck off from the Register of Companies. On 27th
December 2016, MCA has notified new rules i.e. Companies (Removal of Names of
Companies from the Register of Companies) Rules, 2016 prescribing rule for winding up or
closure of private limited company under companies act 2013. By releasing the form STK 2,
ministry of Corporate Affairs has brought the Section 248- 252 of 2013 act into force.

1. Fast track Exit

This is the most awaited procedure, that got active again on 5

th

April 2017. This procedure was introduced in Section 248 of Companies Act 2013.

Fast Track exit can be done in two ways:

Suo Moto by Registrar

The registrar may strike off the name of Company on its own if:

Company has failed to commence any business in a year of its incorporation

Company is not carrying out any business or Activity for preceding 2 financial
years and has not sought the status of Dormant Company.

The Registrar sends a notice (STK-1) of his intention to remove the name and seeks the
representation of Company in 30 days.

Note: Liability on the Directors of the company still exists. ROC can invoke penalty clauses
anytime, and the penalty may range from INR 50K to INR 5Lakhs per director.

Voluntary Removal of Name using Form STK 2

Company can also move an application to Registrar of Companies for striking off the name
by filing form STK-2 along with a fee of Rs 5000/-. Once form is filed, the Registrar has
power and duty to satisfy him that all amount due by the company for the discharge of its
liabilities and obligations has been realized. ROC can also issue a show cause notice in case
of default in filing returns or other obligations.

After above formalities, ROC issues a public notice and strike off the name of Company after
its expiry.

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9/25/2017 ☆ What Is the Procedure to Winding-up Company in India? - Quora
Note: The form is in approval route. Therefore, concerned ROC can ask for the completion
of the fillings.

Details Required:

Incorporation Certificate

Director Identification Number How do I wind up a dormant private limited company

in India and how much does it cost?
Pending Litigation Proceedings if any
What are the exceptions for winding up of a company?
Documents Required:
In India, can a director of a Company after its shut
Application in form STK-2
down (no legal winding up) get away from paying the
Government filing fees: INR 5,000/- creditors by showing insolvency of th...

Copy of Board resolution authorizing the filing of this application; How do I wind up a government company?

A statement of accounts showing the assets and liabilities of the Company made What is the procedure to register a startup company in
up to a day, not more than thirty days before the date of application and certified by India and how much will it cost?
a Chartered Accountant
What is procedure to resister for a company in India?
Shareholder’s approval by way of Special Resolution
How do I set up an IT company in SEZ Uttarakhand?
In the case of a company regulated by any other authority, approval of such What is the procedure and what are the costs?
authority shall also be required.
What is the quick and easy way to wind up a company
Copy of relevant order for delisting, if any, from the concerned Stock Exchange; according to the Companies Act 2013?

Indemnity bond [to be given individually or collectively by the director(s)] in

What is the procedure to reduce the no. of directors of
Form No. STK-3; a company registered in India?

Affidavit in Form No. STK-4

What is the procedure to set up a publicly limited IT
company in India?
Note: This form must be signed by a practicing CA or CS

Companies that cannot file for voluntary strike-off

A company cannot fill the form STK 2 at any time in the previous 3 months if the company
has

1. Has changed its name or shifted its registered office from one State to another;

2. Has made a disposal for value of property or rights held by it, immediately

3. Before cesser of trade or otherwise carrying on of business, for the purpose of

disposal for gain in the normal course of trading or otherwise carrying on of
business;

4. Has engaged in any other activity except the one which is necessary or expedient
for the purpose of making an application under that section, or deciding whether to
do so or concluding the affairs of the company or complying with any statutory
requirement;

5. Has made an application to the Tribunal for the sanctioning of a compromise or

arrangement and the matter has not been finally concluded; or

6. Is being wound up under Chapter XX of Companies Act or under the Insolvency

and Bankruptcy code, 2016

Companies that cannot use Fast Track Exit option:

Companies Registered Under Section 8

Listed companies;

Companies that have been delisted due to non-compliance of listing regulations or

listing agreement or any other statutory laws;

Vanishing companies;

Companies where inspection or investigation is ordered and being carried out or

actions on such order are yet to be taken up or were completed but prosecutions
arising out of such inspection or investigation are pending in the Court;

Companies where notices have been issued by the Registrar or Inspector (under
Section 234 of the Companies Act, 1956 (old Act) or section 206 or section 207 of the
Act)and reply thereto is pending;

Companies against which any prosecution for an offense is pending in any court;

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9/25/2017 ☆ What Is the Procedure to Winding-up Company in India? - Quora
Companies whose application for compounding is pending;

Companies which have accepted public deposits which are either outstanding or
the company is in default in repayment of the same;

Companies having charges which are pending for satisfaction.,

After you Strike off your company:

How do I wind up a dormant private limited company
in India and how much does it cost?
As soon as the name of company is removed from Register, from the date mentioned in the
notice under sub-section (5) of section 248 cease to operate as a company and the Certificate What are the exceptions for winding up of a company?
of Incorporation issued to it shall be deemed to have been cancelled from such date except
for the purpose of realizing the amount due to the company and for the payment or In India, can a director of a Company after its shut
discharge of the liabilities or obligations of the company. down (no legal winding up) get away from paying the
creditors by showing insolvency of th...
For any help regarding this, free to contact us at http://www.wazzeer.com
How do I wind up a government company?
In case, you are thinking of getting some free advise from an experienced Lawyer (and
What is the procedure to register a startup company in
Accountant), checkout Counsel application of Wazzeer .
India and how much will it cost?

What is procedure to resister for a company in India?

How do I set up an IT company in SEZ Uttarakhand?

What is the procedure and what are the costs?

What is the quick and easy way to wind up a company

according to the Companies Act 2013?

What is the procedure to reduce the no. of directors of

a company registered in India?

What is the procedure to set up a publicly limited IT

company in India?

**For any Legal and Accounting support, Happy to help you, let us talk

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Related Questions More Answers Below

How do I wind up a dormant private limited company in India and how much does it cost?

What are the exceptions for winding up of a company?

In India, can a director of a Company after its shut down (no legal winding up) get away
from paying the creditors by showing insolvency of th...

How do I wind up a government company?

What is the procedure to register a startup company in India and how much will it cost?

Prakash Joshi, Studied Company Law, 2013

Answered Apr 20 2016
This article will help you ( For further details visit Complete Solution for CA, CS, ICWA,
Advocates, MBA Taxpayers & Finance Professionals )

As per section 270 of the Companies Act 2013, the procedure for winding up of a company
can be initiated either –

a) By the tribunal or,

b) Voluntary.

I. WINDING UP OF A COMPANY BY A TRIBUNAL:-

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9/25/2017 ☆ What Is the Procedure to Winding-up Company in India? - Quora
As per Companies Act 1956, a company can be wound up by a tribunal on the basis of the
following reasons:

1. Suspension of the business for one year from the date of incorporation or suspension of
business for whole year.

2. Reduction in number of minimum members as specified in the act (2 in case of private

company and 7 in case of public company) How do I wind up a dormant private limited company
in India and how much does it cost?
But with the introduction of new Companies Act 2013, these above stated grounds for
What are the exceptions for winding up of a company?
winding up have been deleted and some new situations for winding up have been inserted.
In India, can a director of a Company after its shut
As per new Companies Act 2013, a company can be wound up by a tribunal in the below
down (no legal winding up) get away from paying the
mentioned circumstances: creditors by showing insolvency of th...

1. When the company is unable to pay its debts How do I wind up a government company?

2. If the company has by special resolution resolved that the company be wound up by the What is the procedure to register a startup company in
tribunal. India and how much will it cost?

3. If the company has acted against the interest of the integrity or morality of India, security What is procedure to resister for a company in India?
of the state, or has spoiled any kind of friendly relations with foreign or neighboring
How do I set up an IT company in SEZ Uttarakhand?
countries.
What is the procedure and what are the costs?
4. If the company has not filled its financial statements or annual returns for preceding 5
What is the quick and easy way to wind up a company
consecutive financial years. according to the Companies Act 2013?

5. If the tribunal by any means finds that it is just & equitable that the company should be What is the procedure to reduce the no. of directors of
wound up. a company registered in India?

6. If the company in any way is indulged in fraudulent activities or any other unlawful What is the procedure to set up a publicly limited IT
business, or any person or management connected with the formation of company is found company in India?
guilty of fraud, or any kind of misconduct.

II. FILING OF WINDING UP PETITION:-

Section 272 provides that a winding up petition is to be filed in the prescribed form no 1, 2 or
3 whichever is applicable and it is to be submitted in 3 sets. The petition for compulsory
winding up can be presented by the following persons:

The company

The creditors ; or

Any contributory or contributories

By the central or state govt.

By the registrar of any person authorized by central govt. for that purpose

At the time of filing petition, it shall be accompanied with the statement of Affairs in form
no 4. That petition shall state the facts up to a specific date which shall not more than 15
days prior to the date of making the statement. After preparing the statement it shall be
certified by a Practicing Chartered Accountant. This petition shall be advertised in not less
than 14 days before the date fixed for hearing in both of the newspapers English and any
other regional language.

III. FINAL ORDER AND ITS CONTENT:-

The tribunal after hearing the petition has the power to dismiss it or to make an interim
order as it think appropriate or it can appoint the provisional liquidator of the company till
the passing of winding up order. An order for winding up is given in form 11.

IV. VOLUNTARY WINDING UP OF A COMPANY:-

The company can be wound up voluntarily by the mutual decision of members of the
company, if:

Ø The company passes a Special Resolution stating about the winding up of the company.

Ø The company in its general meeting passes a resolution for winding up as a result of
expiry of the period of its duration as fixed by its Articles of Association or at the occurrence
of any such event where the articles provide for dissolution of company.

V. PROCEDURE FOR VOLUNTARY WINDING UP:-

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9/25/2017 ☆ What Is the Procedure to Winding-up Company in India? - Quora
1. Conduct a board meeting with 2 Directors and thereby pass a resolution with a
declaration given by directors that they are of the opinion that company has no debt or it
will be able to pay its debt after utilizing all the proceeds from sale of its assets.

2. Issues notices in writing for calling of a General Meeting proposing the resolution along
with the explanatory statement.

3. In General Meeting pass the ordinary resolution for the purpose of winding up by How do I wind up a dormant private limited company
in India and how much does it cost?
ordinary majority or special resolution by 3/4th majority. The winding up shall be started
from the date of passing the resolution. What are the exceptions for winding up of a company?

4. Conduct a meeting of creditors after passing the resolution, if majority creditors are of In India, can a director of a Company after its shut
the opinion that winding up of the company is beneficial for all parties then company can down (no legal winding up) get away from paying the
be wound up voluntarily. creditors by showing insolvency of th...

5. Within 10 days of passing the resolution, file a notice with the registrar for appointment of How do I wind up a government company?
liquidator.
What is the procedure to register a startup company in
India and how much will it cost?
6. Within 14 days of passing such resolution, give a notice of the resolution in the official
gazette and also advertise in a newspaper. What is procedure to resister for a company in India?

7. Within 30 days of General meeting, file certified copies of ordinary or special resolution How do I set up an IT company in SEZ Uttarakhand?
passed in general meeting. What is the procedure and what are the costs?

8. Wind up the affairs of the company and prepare the liquidators account and get the same What is the quick and easy way to wind up a company
audited. according to the Companies Act 2013?

9. Conduct a General Meeting of the company. What is the procedure to reduce the no. of directors of
a company registered in India?
10. In that General Meeting pass a special resolution for disposal of books and all necessary
What is the procedure to set up a publicly limited IT
documents of the company, when the affairs of the company are totally wound up and it is
company in India?
about to dissolve.

11. Within 15 days of final General Meeting of the company, submit a copy of accounts and
file an application to the tribunal for passing an order for dissolution.

12. If the tribunal is of the opinion that the accounts are in order and all the necessary
compliances have been fulfilled, the tribunal shall pass an order for dissolving the company
within 60 days of receiving such application.

13. The appointed liquidator would then file a copy of order with the registrar.

14. After receiving the order passed by tribunal, the registrar then publish a notice in the
official Gazette declaring that the company is dissolved.

Source: All About Winding Up of a Company under CA, 2013

2.7k Views · 3 Upvotes

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Krishna Chaitanya, Measure.Monitor.Analyse

Answered Nov 30, 2014
A company can be closed by adopting the following ways:-
Strike off a company under Section 560

Section 560, of the Companies Act, 1956, deals with strike off provisions of a defunct
company. Any defunct company desirous to strike off its name from the register of Registrar
of company can apply in Form FTE for strike off its name from the register maintained by
ROC as per Guidelines for ‘FAST TRACK EXIT MODE’ issued vide General Circular No.
36/2011 dated 7.6.2011. Similarly, ROC has also power to strike off any defunct company after
satisfying himself of the need to strike off a defunct company and has reasonable cause. But
before passing any order in this regard, an reasonable opportunity of being heard must be
provided to the defunct company by following the due procedure u/s 560.

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9/25/2017 ☆ What Is the Procedure to Winding-up Company in India? - Quora
WINDING UP

Section 425, of Companies Act, 1956, deals with modes of winding up.
The winding up of a company may be either -
1. By the Tribunal (also known as compulsory winding up)

2. Voluntary winding up
How do I wind up a dormant private limited company
3. Subject to the supervision of the Court. in India and how much does it cost?

What are the exceptions for winding up of a company?

You can get a general picture from the following steps of winding up which are summarized In India, can a director of a Company after its shut
below (except Voluntary winding up) down (no legal winding up) get away from paying the
creditors by showing insolvency of th...
1. Issuing a written demand for debt payments to the target company.
How do I wind up a government company?
2. Present a winding up petition to the court and the company
What is the procedure to register a startup company in
3. Court hearing for the petition India and how much will it cost?

4. Granting of winding up order by the court What is procedure to resister for a company in India?
5. Meeting of creditors and other relevant parties
How do I set up an IT company in SEZ Uttarakhand?
6. Appointment of liquidator. What is the procedure and what are the costs?

7. Realization and distribution of company’s assets to the creditors What is the quick and easy way to wind up a company
according to the Companies Act 2013?
8. Realize of duties for liquidator
What is the procedure to reduce the no. of directors of
9. Dissolution of the company.
a company registered in India?

What is the procedure to set up a publicly limited IT

company in India?

Voluntary Winding up
Voluntary winding up which may be classified as:
Member’s Voluntary winding up.

Creditor’s Voluntary winding up.

In case of voluntary winding up, the entire process is done without court supervision. When
the winding up is complete, relevant documents are filed before the court for obtaining the
order of dissolution. A Voluntary winding up can be done by members or creditors. The
circumstances in which company may be wound up voluntarily are:
1. When the period fixed for the duration of the company in its articles has expired

2. When an event on the happening of which the company is to be dissolved as per its
articles happen.

3. The company resolves by special resolution at any general meeting to be voluntary

winding up.

Source: @Ministry of Corporate Affairs

8.7k Views · 3 Upvotes

Kruti Gogri, Company Secretary in practice, blogs at www.cskruti.com

Updated Mar 5

Is your company a defunct company or a defaulting company or both? Fast Track Exit (FTE)
mode is the easiest and the fastest mode to close a defunct company.

A defunct company means a company which has nil assets and liabilities and

has not commenced any business activity or operation since incorporation OR

has not been carrying any business activity or operation for the last one year before
making application under FTE.

Hence, an active or dormant company, which fulfills the above criteria, can make an
application under FTE mode.

A defaulting company means a company that has not filed its balance sheet or annual
returns for any financial year from 2006-07 onwards. Such company will be allowed to
make an application under FTE mode only after the default has been made good.

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9/25/2017 ☆ What Is the Procedure to Winding-up Company in India? - Quora
Requirements for application under FTE

1. Company should qualify as a defunct company

2. Application has to be made in form FTE. Form FTE has to be filed online

3. Filing fees is Rs. 5,000/-

4. Form FTE has to be digitally signed by the Director, or Manager or Secretary of the How do I wind up a dormant private limited company
Company (In case there are no active signatories existing in the MCA 21 system, a in India and how much does it cost?
physical copy of the Form FTE duly filled in, shall be signed manually by a director
What are the exceptions for winding up of a company?
authorised by the Board of Directors of the company and shall be attached with the
Form FTE at the time of filing.) In India, can a director of a Company after its shut
down (no legal winding up) get away from paying the
5. Form FTE shall be certified by a CA/CS/CWA in whole time practice
creditors by showing insolvency of th...
6. Form FTE shall be accompanied by:
How do I wind up a government company?
a. Copy of Board resolution giving authorisation to a Director / Manager /
What is the procedure to register a startup company in
Secretary to file Form FTE (Click here to download a suggested draft of Board
India and how much will it cost?
resolution)
What is procedure to resister for a company in India?
b. An affidavit, which is sworn by each director (Click here to download the format
of affidavit) How do I set up an IT company in SEZ Uttarakhand?
c. An indemnity bond by every director, either individually or collectively (In case What is the procedure and what are the costs?

of foreign national or NRIs, the Affidavit and the Indemnity Bond shall be
What is the quick and easy way to wind up a company
notarized as per the laws of respective countries.) (Click here to download the according to the Companies Act 2013?
format of indemnity bond)
What is the procedure to reduce the no. of directors of
d. Statement of Accounts prepared as on date not prior to more than one month a company registered in India?
preceding the date of filing of application in Form FTE, duly certified by a
statutory auditor or Chartered Accountant in whole time practice.(Click here to What is the procedure to set up a publicly limited IT
company in India?
download the format of statement of accounts)

7. A government company which is defunct company has to also submit “No

Objection Certificate” issued by concerned Administrative Ministry or Department
or State Government along with the application.

After filing the application:

1. Once the Registrar of Companies finds the application in order, it will send a notice
to the applicant company. The company will have an opportunity (30 days) in case
it wants to reconsider the application.

2. The Registrar of Companies, immediately after the expiry of 30 days, shall strike
the name off the register.

3. Registrar will then send notice for publication in the Official Gazette. The company
shall stand dissolved from the date of publication of the notice in the Official
Gazette.

4. Upon approval of Form FTE, status of the company shall be changed to ‘Struck off’
from the Registrar of Companies.

Hope this helps.

You can read more on www.cskruti.com

2.2k Views · 5 Upvotes

JOHNSON XAVIER, studied at The Institute of Company Secretaries of India

Answered Jun 23

Apart from the conventional way of winding up, MCA has provided an alternative method
to to wind up a Company subject to statutory criterion specified under the section. This has
replaced Section 560 (Form FTE) of erstwhile Companies Act, 1956.

1. Ways of Striking off of Companies

By Registrar of Companies on suo-motto

By Application of Company for removal of name/ Strike off of Company

2. Type of Companies which can not be removed under these provisions:

i. Listed Companies

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9/25/2017 ☆ What Is the Procedure to Winding-up Company in India? - Quora
ii. Companies registered under section 8

iii. Companies having charges which are pending for satisfaction

iv. Companies whose application for Compounding is pending

v. Companies against which any prosecution for an offence is pending in any court
How do I wind up a dormant private limited company
vi.Vanishing Companies in India and how much does it cost?

vii. Companies that have been delisted due to non-compliance of listing regulations or What are the exceptions for winding up of a company?
listing agreement or any other statutory laws;
In India, can a director of a Company after its shut
viii. Companies where inspection or investigation is ordered and being carried out or down (no legal winding up) get away from paying the
actions or such order are yet to be taken up or were complete but prosecutions arising out of creditors by showing insolvency of th...
such inspection or investigation are pending in the court.
How do I wind up a government company?
ix. Companies which have accepted public deposits which are either outstanding or the
What is the procedure to register a startup company in
company is in default in repayment of the same;
India and how much will it cost?

x. Companies where notices under section 234 of CA 1956 or 206 or 207 of the Act, 2016 have What is procedure to resister for a company in India?
been issued by the Registrar or Inspector and reply thereto is pending or report under
section 208 is pending or where any prosecution arising out of such inquiry or scrutiny, if How do I set up an IT company in SEZ Uttarakhand?
any, is pending with the court. What is the procedure and what are the costs?

3. Grounds of Strike off of Companies What is the quick and easy way to wind up a company
according to the Companies Act 2013?
i. A company has failed to commence its business within one year of its incorporation. OR
What is the procedure to reduce the no. of directors of
ii. A company is not carrying on any business or operation for a period of two immediately a company registered in India?

preceding financial years and has not made any application within such period for What is the procedure to set up a publicly limited IT
obtaining the status of a dormant company under section 455. company in India?

4. Situations in which Company cant apply for Strike off:

The Company shall not made any application for the strike off of the Company if any time
in the previous 3 month the company has done any of the below mentioned workings:

i. Has Changed its name or

ii. Has Shifted its registered office from one State to another;

iii. has made a disposal for value of property or rights held by it, immediately before cesser
of trade or otherwise carrying on of business, for the purpose of disposal for gain in the
normal course of trading or otherwise carrying on of business;

iv. has engaged in any other activity except the one which is necessary or expedient for the
purpose of making an application under that section, or deciding whether to do so or
concluding the affairs of the company, or complying with any statutory requirement;

v. has made an application to the Tribunal for the sanctioning of a Compromise Or

Arrangement and the matter has not been finally concluded; or

vi. is being wound up under Chapter XX, whether voluntarily or by the Tribunal.

576 Views · Answer requested by Hardik Shah

Arihant Bhura, studied at The Institute of Company Secretaries of India

Answered Apr 15
Dear,

Shutting down a company is a challenging process. However, if you are the owner of an
incorporated business in the form of a Private Limited Company, then it is even more so. A
Pvt. Ltd. Co. can be shut down in several manners depending upon the requirements of the
business owner –

•Sell the company (if possible);

•Declare the company ‘defunct’ and shut it down; or

•‘Wind up’ and dissolve the company.

>>>>>>Defunct Company<<<<<<

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9/25/2017 ☆ What Is the Procedure to Winding-up Company in India? - Quora
The sections that deal with the closure of companies under the Companies Act 2013 have
not yet been notified; hence Section 560, of the Companies Act, 1956, deals with a strike off
provisions of a defunct company. Any defunct company who wants to strike off its name
from the register of Registrar of Company can apply via Form FTE for strike off of its name
from the register maintained by ROC. A private limited company may be declared defunct
and shut down by petitioning the Registrar of Companies.
How do I wind up a dormant private limited company
This may be done in the following manner – in India and how much does it cost?

Board Meeting – Two Directors of the company must sign a resolution that resolves to apply What are the exceptions for winding up of a company?
to the ROC for the declaration of the company as defunct.
In India, can a director of a Company after its shut
Affidavit – Two directors of the company must then submit a notarized affidavit which has down (no legal winding up) get away from paying the
also been signed by the 2 Directors verifying that the company did business for a period up creditors by showing insolvency of th...
to date, and has since then discontinued its operations, and has no assets or liabilities.
How do I wind up a government company?
Indemnity Bond – A notarized indemnity bond, duly signed by two Directors, which states
What is the procedure to register a startup company in
that in the case of any liabilities on the company, such liabilities will be met fully by the
India and how much will it cost?
applicants, even after the name of the company is struck off the register of companies must
be submitted. What is procedure to resister for a company in India?

Accounting Information – The financial statement of the Company for the most recent year, How do I set up an IT company in SEZ Uttarakhand?
prepared up to a period which ended one month before the date of application, must be What is the procedure and what are the costs?

filed by the Company. The statement of accounts submitted must provide a true and fair
What is the quick and easy way to wind up a company
view of the company’s financial position, and to verify the same, a declaration stating this according to the Companies Act 2013?
shall be submitted by a practicing Chartered Accountant.
What is the procedure to reduce the no. of directors of
Financial Statement – At least one year from the date of incorporation must have passed a company registered in India?
before the company petitions the ROC for declaring it as defunct. Audited financial
What is the procedure to set up a publicly limited IT
statements for the period in which business has been undertaken must be submitted along
company in India?
with the application. In case any unsecured loans are there, then a waiver letter for the same
must be submitted.

If the ROC is satisfied with the application given current laws, then it will strike the name of
the company and declare it as defunct. Following the same, a notice in this regard will be
published in the official gazette by ROC. Bear in mind that the approval of form FTE will
take at least one month from the date of filing to be approved.

>>>>>>Winding up the Company<<<<<<

As per section 270 of the Companies Act 2013, winding up of a company may be either –

(a) By the Tribunal (also known as compulsory winding up); or

(b) Voluntary winding up

Voluntary winding up may be –

Member’s Voluntary winding up.

Creditor’s Voluntary winding up.

Whereas Compulsory winding up may be, in addition to the aforementioned –

Any contributor or contributors

By the central or state govt.

By the registrar of any person authorized by central govt. for that purpose.

In the case of voluntary winding up, the process is undertaken without court supervision.

Procedure for Voluntary Winding Up –

Board Meeting with 2 Directors is conducted and a resolution consisting of a declaration

given by directors that they are of the opinion that the company is under no debt or that it
will be able to pay off its debt from the proceeds from the sale of its assets is passed.

General Meeting is conducted after issuing due notice for proposing the resolution along
with the explanatory statement. In the case of ordinary majority an Ordinary resolution, or
a special resolution in case of the 3/4th majority, for the purpose of winding up is passed in
the General Meeting. The winding up will start from the date of passing of the resolution.

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9/25/2017 ☆ What Is the Procedure to Winding-up Company in India? - Quora
Creditors Meeting is conducted after passing the resolution and if majority creditors are of
the opinion that winding up of the company is beneficial for all parties then the company
can be wound up voluntarily.

Liquidators Account is prepared after winding up of affairs of the company, and the same is
audited as well.

After hearing the petition for winding up of the company, the tribunal has the power to How do I wind up a dormant private limited company
in India and how much does it cost?
dismiss it or to make an interim order as it finds appropriate, or it can choose to appoint the
provisional liquidator of the company till the passing of winding up the order. What are the exceptions for winding up of a company?

THANKS In India, can a director of a Company after its shut

down (no legal winding up) get away from paying the
540 Views · 1 Upvote
creditors by showing insolvency of th...

Shariq Hasan, studied Chartered Accountants at The Institute of Chartered How do I wind up a government company?
Accountants of India (2017)
What is the procedure to register a startup company in
Answered Jun 23
India and how much will it cost?
Company has to conduct a General Meeting for winding up the company where majority of
the Directors should give the Consent. What is procedure to resister for a company in India?

Then inform the same to Registrar of Companies, ROC will appoint liquidator for such How do I set up an IT company in SEZ Uttarakhand?
windingup procedures. What is the procedure and what are the costs?

He will look after the debt and liabilities and after all activities he will declare that there is What is the quick and easy way to wind up a company
according to the Companies Act 2013?
no Asset and Liabilities and submit such accounts to ROC.
What is the procedure to reduce the no. of directors of
Then if ROC is satisfied after verifying such Accounts, it will declare that the company is
a company registered in India?
wounded up.
What is the procedure to set up a publicly limited IT
106 Views
company in India?

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