Closure of the Company

Closure of the Company

Shutting down of a company is a challenging task. A company can be voluntarily close down under any unforeseen circumstances by its shareholders. Under Section 248 of the Companies Act 2013, a company can apply for eliminating the name of the entity registered under the Registrar of Companies. There should not be any dues and litigations pending against the company or the Directors before filling application for striking off.

A company can be closed by following a simple Process of Striking Off the name of the Company –   

1. Board Meeting – As per Companies Act 2013, a board meeting is conducted and a resolution is passed by the declaration of the majority of Directors for closing down the company.
2. General Meeting – The special resolution is passed in the meeting with the shareholder is conducted for their approval at the time of removal of the company.
3. Creditors – Consent from the creditors are also required in regards to the closure.
4. MGT 14 – Filing of MGT 14 along with required attachments.
5. Chartered Accountant’s approval- The statement of Accounts not older than 30 days from the date of application for striking off from a Chartered Accountant.
6. Bank Accounts – The statement of Accounts not older than 30 days from the date of application for striking off from a Chartered Accountant.
7. Filing of Form STK-2 – The forms along with the documents certified by the authorities need to be submitted with ROC within 30 days at the closure of the company.  

Criteria for the closure of the Company

• Failure commencement of business within one year of its incorporation
• Non carrying out of any business activity for past two financial years

Documents required

• Filing the Form STK-2
• Government filing fees: INR 10,000/-
• Copy of Board resolutionand Special Resolution of general meeting
• A statement of accounts certified by a Chartered Accountant
• Indemnity bond[to be given individually or collectively by the director(s)] in Form No. STK-3;
• Affidavitin Form No. STK-4 by every director