Winding up a company voluntarily require long procedural compliance to follow. There are certain mandatory requirements that have to be completed to close down a company voluntarily. The Companies Act, 2013 has laid down the procedure for winding up a Defunct Company.
Documents required
1. Copy of Board Regulation showing authorization given for filing this application
2. Private Limited Company Incorporation Certificate
3. Brief Description of the Main Object in Company MOA
4. Any litigation pending before tribunal
5. CA’s audit report on the company’s accounts, assets and liabilities
6. Most recent statements of the Company’s Accounts, Assets, Liabilities
7. Indemnity Bond (to be given individually by the company directors)
8. Affidavit of the company directors as per annex-A
9. NOC Copy from concerned Administrative Body/Ministry/Govt.
10. Copy of relevant order for delisting from concerned stock exchange
11. Stamp paper and notary to be done by the client
Timeline of the service
The approval of the form takes around 20-25 working days depending upon the number of re-submissions received.
FAQs
1. What is the procedure of closure?
Voluntary winding up involves the following steps:
• The company passes a resolution in their general meeting as mentioned above. However, the majority of directors must agree for winding up.
• The consent of the Trade Creditors is also required to wind up the company. Trade Creditors has to give their approval that they don’t have any obligation if the company gets wound up.
• The Company has to make a Declaration of Solvency and the same must be accepted by the trade creditors of the company. The Company must show the Company’s credibility in the Declaration of Solvency.
• The liquidator so appointed will carry out the winding-up proceedings and prepare a report of the winding-up on the assets, properties, debts and so on. The report shall be laid before the general meeting of the company for approval and passing a resolution for dissolution of the company. The Company liquidator shall send a copy of the final accounts of the company and resolutions to the ROC
• The Company liquidator shall also make an application to the Tribunal for an order of dissolution of the company. Upon being satisfied with the winding up, the Tribunal shall pass an order of dissolution within 60 days of the application. A copy of the final order should be filed with the ROC.
• All the above-mentioned procedures shall be presented and filed in a prescribed form and even after the company gets wound up then also company’s name shall be prohibited for 2 years to be taken by any other applicant.
2. What is a defunct company?
For the purpose of this scheme, a defunct company refers to a company that has:
• No asset and no liability, and
• Which has not commenced any business activity after its incorporation or
• Has not been carrying on any business activities since last one year prior to making an application under FTE (Fast Track Exit Scheme).
3. What are the advantages of closure?
• It encourages you to spare each year consistence cost.
• Spares you from rebelliousness punishments.
• No More Headache of record keeping.
• No more executive in Default.
• Shutting an organization will keep you from superfluous IT requests