Close Private Limited Company

Overview of Close Private Limited Company

Closing a Private Limited Company becomes necessary for many reasons, voluntarily or by the Tribunal. The following are some of the reasons why closing the Company in India becomes the only option

1. Business Loss
2. Bankruptcy
3. Passing away of Promoters, etc.

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 close 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.

Eligibility criteria for Close Private Limited Company in India

1. The Company wants to close the operations by passing a special resolution. Simply put, the choice to strike off the Company is taken deliberately.
2. As mentioned in the articles of association, there is an occurrence of an event that requires the shutdown of a Private Limited Company.
3. The Company’s duration expires, if any, as fixed in the articles of association. In this case, the process of winding up a company is voluntarily initiated.

Documents required to Close One Person Company

The following documents are to be submitt to close a Private Limited Company.

1. Application for Striking off of the Private Limited Person Company : The Company that wishes to close must file a closing application with the Registrar
2. Board Resolution for closure : The Private Limited Company must submit the resolution of closing approved by the board members
3. Consent of Directors : A letter of consent from the Directors stating their opinion to close the Private Limited Company must be submitt.
4. Director’s Affidavit
5. Indemnity Bond
6. Statement of Assets and Liabilities : A financial statement indicating the sale of assets and cleared debts must be submitt.

FAQs About Close Private Limited Company?

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