Close a Private Limited Company
A private limited company can be closed through various methods, including selling the business, winding up a defunct company, voluntary winding up, or compulsory winding up. Each method involves specific steps and legal requirements. Detailed information about the dissolution process, required forms, and the role and responsibilities of the company liquidator is also provided to ensure a smooth and compliant closure.
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INTRODUCTION
Closure of a Private Limited Company
If the directors or owners decide to shut down or discontinue the company’s operations, they can choose from different closure options. The most practical and straightforward method is to remove the company’s name from the Register of Companies, commonly known as strike off. This option is preferable when a company has been inactive for a certain period.Another option is filing a winding-up petition, but this route involves more time, cost, and regulatory compliance.Once the strike-off application is approved, the company’s name is removed from the register, and it ceases to exist legally. Before applying for strike-off, the company must complete all pending compliance requirements. The application must be supported by necessary documents and should be prepared and filed with the assistance of a professional.
Advantage
Ways of Winding Up a Company in India
Winding Up
This option is suitable when a company is operational and has assets and liabilities. It requires the approval of the Directors, Members, and Creditors. A liquidator must also be appointed to manage the company’s affairs during the entire process. This method is often time-consuming and involves detailed procedures.
Striking Off
Striking off is preferred for companies with little or no external liabilities. A company can apply for strike-off—also known as fast-track exit—if it has been inactive since its incorporation or for the past two consecutive years. To qualify, the company must have no assets or liabilities and must have met all applicable legal compliance requirements.
A LIST OF DOCUMENTS
📑 Documents Required for Strike-Off of a Private Limited Company
✅ Incorporation Documents
Copy of the company’s Memorandum of Association (MoA), Articles of Association (AoA), Certificate of Incorporation, PAN card, and any other applicable registration certificates.
✅ Accounting Information
Latest financial statement of the company, prepared within 30 days prior to filing the strike-off application.
✅ Details of Activity
A statement specifying whether the company has carried out any business operations. If yes, mention when the operations were discontinued.
✅ Legal Liabilities
A declaration about any pending litigations or legal proceedings involving the company.
✅ NOC from Creditors
No Objection Certificate (NOC) from creditors, if any. (Draft format will be provided by our experts.)
✅ NOC from Regulatory Bodies
If applicable, NOCs must be obtained from relevant regulatory authorities such as the Income Tax Department, SEBI, RBI, etc.
✅ Close Business in 3 Easy Steps
1️⃣ Answer Quick Questions
Spend less than 15 minutes filling out our simple questionnaires
Share basic company details & required documents
Make payment securely through our trusted payment gateways
2️⃣ Experts are Here to Help
Get a dedicated Relationship Manager for assistance
Drafting of board resolutions, affidavit & indemnity bond
Preparation of all necessary supporting documents
Filing of the strike-off application with the MCA
3️⃣ Closure Application is Filed
Entire process takes around 20 working days (subject to Government processing time)
Once approved, your company’s name will be legally removed from the Register of Companies
📅 Process to Dissolve a Private Limited Company
Day 1 – 2
✔️ Initial consultation & discussion on the closure process
✔️ Collection of basic company information & required documents
Day 3 – 8
✔️ Review of details & documents submitted
✔️ Drafting of board resolutions, affidavit & indemnity bond
✔️ Execute & notarise affidavit & indemnity bond
✔️ Final review & signing of all closure documents
Day 9 – 15
✔️ Preparation & filing of necessary e-forms with MCA
✔️ Filing of strike-off application along with supporting documents
Day 16 onwards
✔️ MCA reviews the application
✔️ Once approved, a notice of strike-off is published and your company’s name is officially removed from the Register
Frequently Asked Questions
Have questions before reaching out? Here are quick answers to some of the most common queries we receive about contacting us, consultations, and service inquiries.
An application for strike-off can be filed only after the company has settled or repaid all its liabilities and obtained a No Objection Certificate (NOC) from any creditors. A board meeting must be conducted where all directors approve the closure, along with a special resolution or the consent of at least 75% of shareholders (by paid-up share capital) agreeing to the closure.
Yes. The Registrar of Companies (RoC) may remove a company’s name from the register if there is reasonable cause to believe that:
The company has failed to commence its business within one year of incorporation; or
The company has not carried out any business or operations for the two immediately preceding financial years and has not applied for dormant status during that period.
Closing an inactive company is often the best option because it:
✅ Saves the cost of annual compliances
✅ Eliminates the risk of non-compliance penalties
✅ Avoids the risk of hefty fines and legal prosecution
✅ Removes the possibility of future defaults
After filing the strike-off application with the Ministry of Corporate Affairs (MCA), it typically takes about 90 days for the company to be struck off from MCA records. Once approved by the RoC, a notice of strike-off is published on the MCA portal to allow time for any objections or representations from third parties.
A company is officially dissolved once its name is published by the RoC in the Official Gazette under the Fast Track Exit scheme. From the date of publication, the company is legally closed and no longer exists in the eyes of the law.