Closure of Company
Introduction
Winding up of a Company is the right decision if the same is inactive, defunct, or when there is no purpose left for the company to remain in existence. The video explains the easiest method to close a defunct company in India. For any questions which you may have, please contact us.
Process of Winding up of company
- 1. Take decision in the shareholders meeting
- To close a company with Form STK-2 a meeting of the shareholders of the company must be called in order to decide about the closure with at least 75% voting rights.
- 2. Surrender of Registration & Licenses
- If the company had registered under GST or obtained licenses under any government department, the same need to be surrendered before an application for closure is filed by the company.
- 3. Bank A/c Closure & Prepare Financial Statement
- The bank accounts of the company must be closed, and a certificate from the banker is needed. Prepare a financial statement with Nil Assets and Liabilities, A Practicing CA or Auditor shall certify it
- 4. Affidavit & Indemnity Bond of All Director
- All directors and shareholders have to swear an affidavit that all information and documents being filed is true and correct and an indemnity bond that if any liability comes up the directors shall pay in person.
- 5. Filing of STK-2 Form
- Check that the company has filed all pending ITR & ROC Return to the ROC, the application for closure of the company filed online with a digital signature in Form STK-2 with the government fee of Rs. 10,000/-
When company can be closed with STK-2 Form
- Companies not Commenced Operations
- Inactive Since Past Two Years
- There is Nil Assets or Liabilities
- No Litigation Pending
