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A Private Limited Company is a company which is held privately. A private limited company limits its shareholders to 50. It also restricts shareholders from trading shares publicly.
Winding up of a company can happen in many ways like either by voluntarily or b order of Tribunal, business Loss, Bankruptcy, passing away of promoters etc.
Requirement for closing a Private Limited Company are as follows-
1)Voluntary closing of a Private Limited Company
That is possible if the period is expired or closing clause is mentioned in their Articles of Association or Company wants to close its operations by passing a special resolution.
2)Compulsory Closing of a Private Limited Company
There are many reasons where company is unable to pay its debts or where Tribunal orders Company to wind up or where Company has not filed its Annual return or financial statement or if a Company is conducting its business in a Fraudulent way then Tribunal can order that company to wind up.
Company Closure
Winding up Private Limited Company
FAQ
Common List Of Questioner That Our Customer Ask From Us -Solved !
Procedure for Private Limited Company closure ?
1)Board Resolution- A Board Meeting is held where at least two Directors must be present who are consenting to the Closure of its company, all debts of the company must be cleared and then a special resolution is passed for the closure of its company.
2)General Meeting- Once the Board Meeting held then a General Meeting is conducted in which ¾ th of the majority must consent to the closure of the company and after passing of the resolution, the closing of the Company commences.
3)Creditor Meeting- At least 2/3rd of the creditors must satisfy that closing of a company is in the best interest of all the parties.
4)Then notice for its closure must be filed with the Registrar within 10 days from passing of the Resolution.
5)Within 14 days of passing of the resolution, it notify in official gazette and advertise it in newspaper for its closure.
6)Its certified copies of resolutions must be filed within 30 days of the General Meeting.
7)A final general meeting should be held to dispose the books and papers of the company.
8)Within 14 days of passing resolution, copy of accounts is to be filed and Application for its dissolution must be moved.
9)Once the Tribunal is satisfied with the copies and application then it may give order for its closure within 60 days of receiving the Application.
10)Once closing order is received from the Tribunal the Appointed liquidator will file a copy to the Registrar, then the Registrar will publish a notice that the Private Limited Company is dissolved which means that it is now closed.
2)General Meeting- Once the Board Meeting held then a General Meeting is conducted in which ¾ th of the majority must consent to the closure of the company and after passing of the resolution, the closing of the Company commences.
3)Creditor Meeting- At least 2/3rd of the creditors must satisfy that closing of a company is in the best interest of all the parties.
4)Then notice for its closure must be filed with the Registrar within 10 days from passing of the Resolution.
5)Within 14 days of passing of the resolution, it notify in official gazette and advertise it in newspaper for its closure.
6)Its certified copies of resolutions must be filed within 30 days of the General Meeting.
7)A final general meeting should be held to dispose the books and papers of the company.
8)Within 14 days of passing resolution, copy of accounts is to be filed and Application for its dissolution must be moved.
9)Once the Tribunal is satisfied with the copies and application then it may give order for its closure within 60 days of receiving the Application.
10)Once closing order is received from the Tribunal the Appointed liquidator will file a copy to the Registrar, then the Registrar will publish a notice that the Private Limited Company is dissolved which means that it is now closed.
How long before can the company file for closing?
After one year of incorporation of the company.
What should the company notify in case of submitting an application of closing the Private Limited Company?
Within 7 days of Application submission, the company must notify its creditors, shareholders, employees, trustees and other Directors.
What happens if the company does not comply with the timeline ?
If a company fails to comply with the timeline then a penalty will be incurred upon the Directors from starting another company.
