COMPLIANCE FOR WINDING UP OF A

Closure Of A Private Limited Company

If you are not doing any business in the private limited or the business is incurring continuous losses it is better to close such private limited and look for a fresh start.A private limited company thus needs to be windup properly when there is no transactions or directors of company are not willing to continue its operations.If you want to close your Private Limited Company, is should be at-least a year old and the creditors of the company should be willing to let you close the company. Then, you can close your company through Fast track scheme. A Fast Track scheme is the easy route for the Directors to close their company without much legal complications and time consuming. Instead of going for Winding-up of Company, which you need to appoint or Court would appoint an Official Liquidator and the process, would go on for months. In order to avoid all these lengthy legal formalities, you can use the option of Fast Track Exit Scheme to close your Private Limited Company.


Highlights

Easy to close

The Fast Track exit scheme was introduced by the Ministry of Corporate Affairs (MCA)in order to make the winding up procedure more smooth and easy for inactive companies that have NIL assets and liabilities to close down or Wind up. 



Low Cost

The Fast track Exit Scheme provides a cost effective way for winding up of a Private Limited company provided that the Company should be eligible for the Fast Track Exit Scheme. It is actually cheaper to wind up a company and incorporate again when the time is right. Startup setup can help you to wind up the Company at an affordable price.

Speedy Disposal

A Company can dispose off the winding up of a private limited Company in about 90 days whereas other modes are very longer and time consuming.Hence, closing a company under fast track exit scheme is faster and easier.



Less legal Formalities

A company is a legal entity and a juristic person established created under the Companies Act. Therefore, a company required regular maintenance of Compliance throughout its lifecycle. Fast track exit used can be used close a company that is not active and avoid compliance responsibilities.

Inactive Companies

The Companies that is not carrying out any activity or a business since its incorporation can be easily and quickly wounded up through Fast Track Exit scheme. 



FAQs

What is Winding up of a Company?

Winding up of a company is defined as a process by which the life of a company is brought to an end and its property is administered for the benefit of its members & creditors. An Administrator, called a liquidator is appointed and he takes control of the company, collects its assets, pays its debts and finally distributes any surplus among the members in accordance with their rights.

When is a Company being wound up?

A company may wound up its affairs, if it is unable to carry on its business, or if it was formed only for a limited purpose, or if it is unable to meet its financial obligation.

What are the modes of Winding up of a Company?

There are three modes for Winding up of a Company-

  • Winding up by the Court
  • Voluntary Winding up
  • Winding up subject to Supervision of the Court
  • Fast Track exit Scheme

Who can apply for closure of a Company

Any defunct company desirous to strike off its name from the register of Registrar of company (ROC) can apply in Form Fast Track Exit (FTE) for strike off its name from the register maintained by such ROC.

What is a Defunct Company?

For the purpose of applying for the FTE scheme, a defunct company means a company which has:

  • Nil asset and nil liability, and
  • Not commenced any business or activity since incorporation or
  • Not been carrying any business operation since last one year before making an application under Fast Track Exit Scheme.

Can a defaulting company apply for FTE?

A defaulting Company is a company which does not file the annual returns and/or annual financials for any financial year(s).Such a company can apply for FTE provided it fulfils other conditions.

What is a Dormant Company?

Where a company is formed and registered under this Act for a future project or to hold an asset or intellectual property and has no significant accounting transaction, such a company or an inactive company may make an application to the Registrar in such manner as may be prescribed for obtaining the status of a dormant company.

What is Fast Track Exit (FTE) Scheme?

FTE is an easy mode of closing non-operating companies at cheaper cost with lesser formalities as compared to earlier Schemes for Exit of non-operating companies.Fast Track Exit Mode (FTE) is introduced by Ministry of Corporate Affairs for giving opportunity to non-operating companies for getting their names struck off from the records of Ministry of Corporate Affairs.

What are the advantages of FTE Scheme?

FTE scheme helps in speedy disposal of striking off of names of dormant or inactive or defunct Company from the register of Registrar of Companies with smooth and steady ways with lesser formalities and time Credibility.

Which Companies are eligible to apply for FTE scheme?

The Companies which are eligible for FTE scheme are

  • A Defunct Company having active or dormant status, or
  • A Defunct Company, being a Government Company, wherein No Objection Certificate (NOC) has been issued by the concerned Ministry/Department.

Which Companies are not eligible to apply for FTE Scheme?

  • Listed Companies.
  • Companies under Non-compliance of the respective Listing agreement or Statutes.
  • Section 25 Companies.
  • Vanishing Companies.
  • Companies under inspection, investigation or prosecution.
  • Companies wherein Public deposits are outstanding or where they are in default w.r.t. the same.
  • Companies having secured loans.
  • Companies having management disputes.
  • Companies wherein filing documents have been stayed by the respective Court/authority.
  • Companies with dues outstanding w.r.t. Revenue authorities/Central/State Governments.

How can I close a Private Limited company through Start up Setup?

Just log on to our website and provide your Contact details, our team experts will revert you as soon as possible and guide you in the process.

Process Flow

Winding up


Winding up of a Company will be carried out by Start Up Set up under Fast track exit(FTE) mode.








1 Day


Review Process


An Expert reviews  the Business Activity to assure whether the Company is eligible for closure through Fast Track Exit Mode.







1 Day


Documents to be prepared

For closure of a Private Ltd Co, Our team of experts will have to prepare  essential documents like Board Resolutions, Statements of Accounts, etc. All the documents will be sent by us for your Confirmation along with timely follow ups.





1 Day


E Filing


All the documents related to Fast Track Exit will  be  submitted by our team to Registrar of Companies to strike off the name from the register.







1 Day






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