Close a private limited Company is a service offered in Chennai, Tamil Nadu, by First Auditor. We are the most reputable Close a Private Limited Company service provider in Chennai, Tamil Nadu. In Coimbatore, Madurai, Tirupur, Trichy, Thanjavur, Dindigul, Erode, Salem, Namakkal, Karur, hosur, tuticorin, krishnagiri, Cuddalore, Kanyakumari, and Pondicherry, we offer Close a private limited Company service. We provide a low-cost approach to close a Private Limited Company. We provide the service at a lower cost and more efficiently than our rivals.
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Company Closure :
A firm is wound up when all commercial activities are stopped, transactions are stopped, and all company assets are sold to other people or businesses in order to pay off any outstanding debts. When the company's obligations are paid off, the residual assets will be distributed to shareholders in proportion to their capital investments.
There are two methods that can be used to wind up the business. Mandatory winding up A special resolution passed by the directors during the company's board meeting that requests a court intervention might be disregarded in favor of the compulsory winding up of a company being carried out by a tribunal or court order. Similar to this, if the company has engaged in any fraudulent or unlawful actions, it may be forced to wind up by any official person of the firm submitting a petition with a court or a tribunal.
Voluntarily dissolving: The Corporation needs a resolution from the directors in order to dispose off all of its assets or transfer its stock to another organization
Advantages of closing a business
- After the liquidation : procedure is complete, all directors and corporate officers are released from all debts and obligations to creditors.
- Avoiding legal action against the company : If the resolution is approved willingly by the board of directors, they will ignore any legal action brought by the court or the tribunal and give the company's directors a platform to focus on other commercial prospects.
- Comparatively low cost charged for liquidation : Because fees will be assessed on the sale of assets, the cost or costs associated with the liquidation process are modest
- There will be a cancellation of all leases : Any lease that a corporation or other entity had signed for a set period of time will be terminated, together with all of its terms and conditions, during the liquidation process. Any fines that must be paid will be taken out of the proceeds from the sale of assets.
- Advantages for creditors : Following a protracted legal battle, creditors will gain from the liquidation process since they will be qualified for a default payment with regard to the proposal of credits given by all creditors.
Documents needed for the company's closure include :
The following documents are necessary for the company's closure :
- PAN card for the business
- Bank account closure certificate for the business.
- An indemnification bond, which the directors must notarize.
- Newest financial statement for the company.
- Accounts that include all of the company's assets and obligations and have been reviewed by a Chartered Accountant (CA).
- Proof that the resolution was approved by 3/4 of the board.
- Application to have the corporate name removed.
FAQ
Is ROC filing required before a business rejects an application?
Yes, it is a must to complete the process since the MCA database needs to be updated to reflect that the company is free from any legal obligations.
What are the fundamental requirements for shutting a company?
The main criterion is that a company must have been operating for at least a year before applying for closure.
What is the deadline for submitting Closure paperwork to ROC?
Within 30 days of the date on which the Statement of Assets and Liabilities was signed, the Form must be submitted to the ROC office.
What is the Fast Track Exit (FTE) Scheme?
FTE is a company closure programme established by MCA to make the process simple and quick. This must be taken care of in order to close a business.
What is MCA?
The Ministry of Corporate Affairs, or MCA, is responsible for maintaining the database and enforcing the complaint procedures.