Close Company in India

The procedure of voluntarily winding up of a company is as follows –

• Step 1 – Firstly, conduct a board meeting with 2 directors to pass a resolution along with the declaration that the company has no debts and the company is in a position to pay its creditors after selling company’s assets.
• Step – 2 –In the second step, company issues a written notice to call a general meeting along with explanatory statement proposing the resolution.
• Step – 3 – In the third step, Company pass the ordinary resolution in the general meeting for the purpose of winding up by ordinary majority or 3/4th of the majority by passing the special resolution.
• Step – 4 – After passing the special resolution in the third step, conduct a meeting of creditors and if majority of the creditors are having the same opinion that winding up of a company is beneficial for all the parties, company will be wounded voluntarily.
• Step – 5 – After taking the decision in the creditors meeting to wind up the company, file a notice with the registrar to appoint a liquidator within 10 days after passing of resolution.
• Step – 6 – In the sixth step, company has to give notice of the resolution in the official gazette and also advertise the same in the newspaper within 14 days after passing of resolution.
• Step – 7 – In the 7th step, company has to file certified copies of resolution (ordinary or special) passed within 30 days of the general meeting.
• Step – 8 – In the 8th step, wind up the affairs of the company, prepare the liquidator account and auditors will audit the same.
• Step – 9 – In the 9th step, company conducts a general meeting
• Step – 10 – In the 10th step, company pass a special resolution in the general meeting to dispose books and all other necessary documents after winding up the affairs of the company.
• Step – 11 – In the 11th step, company submits account copy as well as application to the tribunal within 15 days of the first general meeting to pass order for dissolution.
• Step – 12 – In the 12th step, If a tribunal found that your all accounts are in order and company has followed all the necessary compliances, tribunal will pass the order for dissolving the company within 60 days of receiving the application
• Step – 13 – The appointed liquidator submits a copy of order with the registrar in step - 13.
• Step – 14 – In step – 14, registrar publish a notice on the official gazette declaring that the company is dissolved after receiving the order passed by tribunal.