Close your Private Limited Company easily with complete legal compliance.
When the company’s directors or owners choose to discontinue operations, they can initiate the closure process. The simplest and most preferred method is striking off the company’s name from the Register of Companies, especially when it has remained inactive for a specific duration. Alternatively, the company may undergo formal winding up, though this process is more time-consuming and compliance-heavy.
Once the strike-off is approved, the company’s name is officially removed from the register, rendering it non-existent in the eyes of the law. However, before applying for strike-off, all pending compliances must be completed, and the application must be filed with the necessary documents under the guidance of a professional.
This method is suitable for companies that are still active and possess assets or liabilities. It involves obtaining consent from members, directors, and creditors, as well as appointing a liquidator to oversee and manage the company’s affairs during the process. However, this procedure is generally more detailed and time-consuming.
Striking off is ideal for companies with little to no external liabilities. A business that has remained inactive since incorporation or for at least the last two years can apply for strike-off, often referred to as a fast-track exit. To qualify, the company must have no assets or liabilities and must have fulfilled all applicable legal compliances.
Company’s Memorandum of Association (MoA), Articles of Association (AoA), Certificate of Incorporation, PAN card, and other applicable registration certificates.
The company’s financial statements for the most recent financial year, prepared within 30 days prior to filing the application.
Details of the company’s operational status — if it has been active, specify the period of operation and the date from which business activities were discontinued.
A declaration outlining any pending litigations or legal proceedings involving the company, if applicable.
The company is required to obtain a No Objection Certificate (NOC) from its creditors, if applicable. (A draft NOC can be prepared and provided by LW experts.)
A No Objection Certificate (NOC) for closure must be obtained from relevant regulatory authorities such as the Income Tax Department, SEBI, RBI, and others, if applicable.
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*Subject to Government processing time
The Registrar of Companies may remove a company’s name from the register if there is reasonable cause to believe that:
The company failed to commence business within one year of incorporation; or
The company has not carried on any business or operations for the two immediately preceding financial years and has not applied for dormant status during that period.
Closure is the most suitable option for a non-operational company, as it:
Eliminates ongoing compliance costs
Avoids the risk of non-compliance
Prevents hefty penalties and legal prosecutions
Reduces the risk of future defaults
If a company is struck off due to default, it must apply to the National Company Law Tribunal (NCLT) to restore its status from “struck off” to “active.” The application must include valid reasons justifying the default and requesting reinstatement.
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