{"id":14555,"date":"2021-08-02T00:41:50","date_gmt":"2021-08-01T19:11:50","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=14555"},"modified":"2023-05-18T23:33:41","modified_gmt":"2023-05-18T18:03:41","slug":"overview-on-winding-up-of-a-company","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/overview-on-winding-up-of-a-company\/","title":{"rendered":"Overview on winding-up of a company"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a0563a700974\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a0563a700974\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/overview-on-winding-up-of-a-company\/#Overview_on_Winding_up_of_a_Company\" title=\"Overview on Winding up of a Company\">Overview on Winding up of a Company<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/overview-on-winding-up-of-a-company\/#BRIEF_INTRODUCTION\" title=\"BRIEF INTRODUCTION\">BRIEF INTRODUCTION<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/overview-on-winding-up-of-a-company\/#Various_aspects_of_winding_up_of_a_Company\" title=\"Various aspects of\u00a0 winding up of a Company\">Various aspects of\u00a0 winding up of a Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/overview-on-winding-up-of-a-company\/#TYPES_OF_WINDING_UP\" title=\"TYPES OF WINDING UP\">TYPES OF WINDING UP<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/overview-on-winding-up-of-a-company\/#VOLUNTARY_WINDING_UP\" title=\"VOLUNTARY\u00a0WINDING UP\">VOLUNTARY\u00a0WINDING UP<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/overview-on-winding-up-of-a-company\/#PROCEDURE_OF_VOLUNTARY_WINDING_UP\" title=\"PROCEDURE OF VOLUNTARY\u00a0WINDING UP\">PROCEDURE OF VOLUNTARY\u00a0WINDING UP<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/overview-on-winding-up-of-a-company\/#COMPULSORY_WINDING_UP\" title=\"COMPULSORY\u00a0WINDING UP\u00a0 \">COMPULSORY\u00a0WINDING UP\u00a0 <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/overview-on-winding-up-of-a-company\/#PROCEDURE_OF_COMPULSORY_WINDING_UP\" title=\"PROCEDURE OF COMPULSORY\u00a0WINDING UP\u00a0 \">PROCEDURE OF COMPULSORY\u00a0WINDING UP\u00a0 <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/overview-on-winding-up-of-a-company\/#IMPORTANT_THINGS_UNDER_WINDING_UP\" title=\"IMPORTANT THINGS UNDER WINDING UP\">IMPORTANT THINGS UNDER WINDING UP<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/overview-on-winding-up-of-a-company\/#WAYS_OF_DISSOLUTION\" title=\"WAYS OF DISSOLUTION\">WAYS OF DISSOLUTION<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/overview-on-winding-up-of-a-company\/#DIFFERENCE_BETWEEN_DISSOLUTION_AND_WINDING_UP\" title=\"DIFFERENCE BETWEEN DISSOLUTION AND\u00a0WINDING UP\u00a0\">DIFFERENCE BETWEEN DISSOLUTION AND\u00a0WINDING UP\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/overview-on-winding-up-of-a-company\/#WAYS_OF_WINDING_UP\" title=\"WAYS OF WINDING\u00a0UP\">WAYS OF WINDING\u00a0UP<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/overview-on-winding-up-of-a-company\/#While_Clearing_Out_Debts_Assets_from_The_Members_are_going_to_be_Accounted_within_the_Following_Ways\" title=\"While Clearing Out Debts, Assets from The Members\u00a0are going to be\u00a0Accounted\u00a0within the\u00a0Following Ways:\">While Clearing Out Debts, Assets from The Members\u00a0are going to be\u00a0Accounted\u00a0within the\u00a0Following Ways:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/carajput.com\/blog\/overview-on-winding-up-of-a-company\/#Removal_of_companys_name_Application_to_be_made_to_ROC_C-PACE\" title=\"Removal of company\u2019s name Application\u00a0to be made to ROC\u00a0 C-PACE\">Removal of company\u2019s name Application\u00a0to be made to ROC\u00a0 C-PACE<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/carajput.com\/blog\/overview-on-winding-up-of-a-company\/#Key_Points_of_new_revised_Rules_and_form_under_Companies_Removal_of_Names_of_Companies_from_the_Register_of_Companies_Amendment_Rules_2023\" title=\"Key Points of new revised Rules and form under\u00a0Companies (Removal of Names of Companies from the Register of Companies) Amendment Rules, 2023\">Key Points of new revised Rules and form under\u00a0Companies (Removal of Names of Companies from the Register of Companies) Amendment Rules, 2023<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<figure id=\"attachment_14556\" aria-describedby=\"caption-attachment-14556\" style=\"width: 964px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/08\/OVERVIEW-ON-WINDING-UP-OF-A-COMPANY.jpg\" rel=\"attachment wp-att-14556\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-14556\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/08\/OVERVIEW-ON-WINDING-UP-OF-A-COMPANY.jpg\" alt=\"OVERVIEW ON WINDING UP OF\u00a0A COMPANY\" width=\"964\" height=\"502\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/08\/OVERVIEW-ON-WINDING-UP-OF-A-COMPANY.jpg 311w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/08\/OVERVIEW-ON-WINDING-UP-OF-A-COMPANY-300x156.jpg 300w\" sizes=\"(max-width: 964px) 100vw, 964px\" \/><\/a><figcaption id=\"caption-attachment-14556\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">OVERVIEW ON WINDING UP OF\u00a0A COMPANY<\/span><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Overview_on_Winding_up_of_a_Company\"><\/span><span lang=\"EN-IN\" style=\"color: navy;\">Overview on Winding up of a Company<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"BRIEF_INTRODUCTION\"><\/span><span style=\"color: #000080;\"><strong>BRIEF INTRODUCTION<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Winding up\u00a0is the process involving\u00a0liquidation of <a href=\"https:\/\/carajput.com\/blog\/tag\/public-limited-company\/\">Company<\/a>\u2019s assets which are collected and sold\u00a0so as\u00a0to pay the debts incurred. Under the winding up process firstly the debts, expenses and costs are paid and any remaining amount is distributed among the shareholders.<\/p>\n<p>Once\u00a0the corporate\u00a0is liquidated\u00a0it&#8217;s\u00a0formally dissolved\u00a0and also the\u00a0Company ceases to exists. Winding up\u00a0is basically a\u00a0legal mechanism to\u00a0shut down\u00a0a company\u00a0and cease all the activities that re carried on.<\/p>\n<p>Once winding up process is initiated against a corporate entity, its\u00a0assets are monitored\u00a0in such a way, so that\u00a0the stakeholder\u2019s interest does not get hampered.<strong>\u00a0<\/strong><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Various_aspects_of_winding_up_of_a_Company\"><\/span><strong><span lang=\"EN-IN\" style=\"color: navy;\">Various aspects of\u00a0 winding up of a Company<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A Private company is an artificial judicial person and requires various compliances if the corporate fails to take care of these compliances there are fines and penalties or may even be disqualification of the directors from further incorporating a corporate entity.<\/p>\n<p>it&#8217;s always beneficial to wind up a corporate entity that has become inactive or where there isn\u2019t any transaction.<\/p>\n<p>The shareholders of\u00a0the corporate\u00a0can initiate the\u00a0winding up\u00a0of\u00a0the corporate\u00a0anytime. If there are secured or unsecured creditors or employees on roll then all the dues\u00a0must\u00a0be settled. After settling the dues\u00a0it&#8217;s\u00a0necessary\u00a0to shut\u00a0all the Company bank accounts.<\/p>\n<p>The GST registration must\u00a0even be\u00a0surrendered\u00a0just in case\u00a0of Company\u00a0winding up. Once all registration has been surrendered, the applicant can apply for the winding up petition, with the Ministry of Corporate Affairs.<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"TYPES_OF_WINDING_UP\"><\/span><span style=\"color: #000080;\"><strong>TYPES OF WINDING UP<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<figure id=\"attachment_14560\" aria-describedby=\"caption-attachment-14560\" style=\"width: 800px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/08\/OVERVIEW-ON-WINDING-UP-OF-A-COMPANY..jpg\" rel=\"attachment wp-att-14560\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-14560 size-full\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/08\/OVERVIEW-ON-WINDING-UP-OF-A-COMPANY..jpg\" alt=\"OVERVIEW ON WINDING UP OF\u00a0A COMPANY\" width=\"800\" height=\"400\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/08\/OVERVIEW-ON-WINDING-UP-OF-A-COMPANY..jpg 800w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/08\/OVERVIEW-ON-WINDING-UP-OF-A-COMPANY.-300x150.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/08\/OVERVIEW-ON-WINDING-UP-OF-A-COMPANY.-768x384.jpg 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/a><figcaption id=\"caption-attachment-14560\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">OVERVIEW ON WINDING UP OF\u00a0A COMPANY<\/span><\/figcaption><\/figure>\n<p>A company\u00a0are often\u00a0tense\u00a0in two different ways-<\/p>\n<ol>\n<li>Voluntary\u00a0winding up\u00a0of\u00a0a corporate entity<\/li>\n<li>Compulsory\u00a0winding up\u00a0of\u00a0an organization<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<ol>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"VOLUNTARY_WINDING_UP\"><\/span><span style=\"color: #333399;\"><strong>VOLUNTARY\u00a0WINDING UP<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<p>The\u00a0winding up\u00a0of\u00a0a corporate entity\u00a0is\u00a0done voluntarily by the members of\u00a0the corporate, if:<\/p>\n<ul>\n<li>The company passes a special resolution for\u00a0winding up\u00a0the corporate.<\/li>\n<li>The Company, in their general meeting, shall pass a resolution, approving the winding up of the said corporate voluntarily as a result of the expiry of the period of its duration.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"PROCEDURE_OF_VOLUNTARY_WINDING_UP\"><\/span><span style=\"color: #333399;\"><strong>PROCEDURE OF VOLUNTARY\u00a0WINDING UP<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-22492\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/08\/Fresh-voluntary-winding-up.jpg\" alt=\"Fresh-voluntary-winding-up\" width=\"799\" height=\"430\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/08\/Fresh-voluntary-winding-up.jpg 578w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/08\/Fresh-voluntary-winding-up-300x161.jpg 300w\" sizes=\"(max-width: 799px) 100vw, 799px\" \/><\/p>\n<ul>\n<li>Convene a\u00a0meeting\u00a0with\u00a0the directors during which\u00a0a resolution should be passed with a declaration by\u00a0the directors that\u00a0they need\u00a0made\u00a0an explanation\u00a0within the\u00a0affairs of\u00a0the corporate\u00a0and the\u00a0company no debts or\u00a0the corporate\u00a0pays\u00a0from the proceeds of the assets sold\u00a0within the\u00a0voluntary\u00a0winding up\u00a0of\u00a0the corporate.<\/li>\n<li>Notices should be issued in writing to call for the general\u00a0meeting of\u00a0the corporate\u00a0proposing the resolutions, with\u00a0an appropriate\u00a0explanatory statement.<\/li>\n<li>Pass\u00a0the ordinary\u00a0resolution for\u00a0winding up\u00a0of\u00a0the corporate\u00a0within the\u00a0generally meeting by ordinary majority or special resolution by 3\/4 majority. The\u00a0winding up\u00a0of\u00a0the corporate\u00a0shall commence from the date of passing the resolution.<\/li>\n<li>A meeting of the creditors should be conducted on\u00a0the identical\u00a0day or\u00a0the following\u00a0day of passing the resolution regarding\u00a0winding up. If the 2\/3rd value of the creditors are of the opinion that\u00a0it&#8217;s\u00a0in interest of all parties to wind up\u00a0the corporate, the corporate\u00a0can\u00a0tense\u00a0voluntarily.<\/li>\n<li>A notice in respect of appointment of liquidator, shall be filed with the registrar, within 10 days from the day of passing the resolution for company\u00a0winding up,<\/li>\n<li>Also, within 30 days from the day of\u00a0the final\u00a0meeting for the\u00a0winding up, the certified copies of\u00a0the ordinary\u00a0or special resolution passed\u00a0for the\u00a0winding up\u00a0of\u00a0the corporate.<\/li>\n<li>The affairs of\u00a0the corporate\u00a0have to\u00a0be\u00a0finally ended up\u00a0and prepare the liquidators account of the\u00a0winding up\u00a0account and\u00a0to urge\u00a0it audited.<\/li>\n<li>Call for\u00a0the ultimate\u00a0General meeting of\u00a0the corporate.<\/li>\n<li>A special resolution should be passed for the disposal of the books\u00a0and also the\u00a0papers of\u00a0the corporate\u00a0when the affairs of\u00a0the corporate\u00a0are completely\u00a0aroused\u00a0and\u00a0it&#8217;s\u00a0close to\u00a0be dissolved.<\/li>\n<li>Within\u00a0fortnight\u00a0of\u00a0the overall\u00a0meeting of\u00a0the corporate, file\u00a0a duplicate\u00a0of the accounts and file\u00a0and therefore the\u00a0application to the tribunal for passing an order for the dissolution of\u00a0the corporate.<\/li>\n<li>The tribunal shall pass an order dissolving\u00a0the corporate\u00a0within 60 days of receiving\u00a0the appliance.<\/li>\n<li>The company liquidator is required to file\u00a0a duplicate\u00a0of the order with the registrar.<\/li>\n<li>The registrar will then on receiving the copy of the order\u00a0passed by\u00a0the Tribunal then publish a notice\u00a0within the\u00a0official gazette that\u00a0the corporate\u00a0is dissolved.<\/li>\n<\/ul>\n<ol start=\"2\">\n<li>\n<h3><span class=\"ez-toc-section\" id=\"COMPULSORY_WINDING_UP\"><\/span><span style=\"color: #333399;\"><strong>COMPULSORY\u00a0WINDING UP\u00a0 <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<p>Tribunal is\u00a0answerable for such kind\u00a0of\u00a0wind up\u00a0of Companies. Some of the circumstances are as follows &#8211;<\/p>\n<ul>\n<li>Unpaid debts of\u00a0an organization<\/li>\n<li>When a special resolution is passed for the\u00a0winding up<\/li>\n<li>An unlawful act by\u00a0an organization\u00a0or the management of\u00a0the corporate<\/li>\n<li>If\u00a0the corporate\u00a0is involved in fraudulent acts or misconduct<\/li>\n<li>If the<a href=\"https:\/\/www.caindelhiindia.com\/blog\/key-points-on-annual-filings-to-roc\/\"> annual returns<\/a> or financial statements\u00a0aren&#8217;t\u00a0filed for five consecutive years with the ROC.<\/li>\n<li>The Tribunal is of the view that the corporate should windup.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"PROCEDURE_OF_COMPULSORY_WINDING_UP\"><\/span><strong><span style=\"color: #333399;\">PROCEDURE OF COMPULSORY\u00a0WINDING UP<\/span>\u00a0 <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>A petition be filed to the tribunal\u00a0together with\u00a0the statement of the affairs of\u00a0the corporate\u00a0that&#8217;s\u00a0to\u00a0finish up.<\/li>\n<li>The tribunal will either accept or reject the petition if the person\u00a0aside from\u00a0company files a petition, then the tribunal may ask\u00a0the corporate\u00a0to file objection. it goes\u00a0together with\u00a0the statement of affairs within 30 days.<\/li>\n<li>Liquidator\u00a0has to\u00a0be appointed by the tribunal for the\u00a0winding up\u00a0process. The liquidator provides assistance and monitoring of the liquidation proceedings.<\/li>\n<li>Liquidator\u00a0is meant\u00a0to arrange\u00a0a draft report for approval. when the draft report gets approved, he shall submit\u00a0the ultimate\u00a0report, to\u00a0the tribunal for passing the\u00a0winding up\u00a0order.<\/li>\n<li>It\u00a0is necessary for the liquidator to forward\u00a0a duplicate\u00a0to the ROC within 30 days, if he fails\u00a0to try to\u00a0so then he will get a penalty.<\/li>\n<li>If the ROC finds the draft satisfactory, he then approves the\u00a0winding up\u00a0of\u00a0the corporate\u00a0and also the\u00a0name of\u00a0the corporate\u00a0is strike off from the register of Companies.<\/li>\n<li>ROC sends notice for Publication within the official gazette of India<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"IMPORTANT_THINGS_UNDER_WINDING_UP\"><\/span><span style=\"color: #333399;\"><strong>IMPORTANT THINGS UNDER WINDING UP<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>When over 3L directors faced directorship suspension (which means\u00a0they cannot\u00a0be directors in any company\u00a0for five\u00a0years), entrepreneurs or directors who were lucky enough\u00a0to not to come under the\u00a0radar, are advised to take certain serious decisions on filings and existence of the corporate entity.<\/p>\n<p>During this\u00a0blog, with\u00a0an attempt to help those directors who are considering\u00a0winding up,\u00a0we are going to\u00a0consider\u00a0things one must\u00a0keep in\u00a0mind\u00a0so as\u00a0to windup\u00a0a corporate entity.<\/p>\n<p>Any company (Private\u00a0company\u00a0or One Person Company) continues to be\u00a0existing\u00a0until\u00a0it&#8217;s\u00a0dissolved\u00a0in keeping with\u00a0the law.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"WAYS_OF_DISSOLUTION\"><\/span><span style=\"color: #000080;\"><strong>WAYS OF DISSOLUTION<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li>By Removal of the company\u2019s name from the register by the registrar without\u00a0winding up\u00a0order.<\/li>\n<li>By order of the Court<\/li>\n<li>\u00a0Winding up<\/li>\n<li>By order of the central government.<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"DIFFERENCE_BETWEEN_DISSOLUTION_AND_WINDING_UP\"><\/span><span style=\"color: #000080;\"><strong>DIFFERENCE BETWEEN DISSOLUTION AND\u00a0WINDING UP\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>As per the winding up procedure, the liquidators is required to perform function by realizing and collecting the assets of\u00a0the corporate, paying off its debts and obligations, distributing the surplus amount with the members of\u00a0the corporate.<\/li>\n<li>Dissolution comes after the liquidators have done all this\u00a0within the\u00a0finishing up\u00a0and tag\u00a0the corporate\u00a0as non-active.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"WAYS_OF_WINDING_UP\"><\/span><span style=\"color: #000080;\"><strong>WAYS OF WINDING\u00a0UP<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li>Compulsory winding ordered by a court.<\/li>\n<li>Voluntary winding<\/li>\n<li>By the order made, after supervision of the court.<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"While_Clearing_Out_Debts_Assets_from_The_Members_are_going_to_be_Accounted_within_the_Following_Ways\"><\/span><span style=\"color: #000080;\">While Clearing Out Debts, Assets from The Members\u00a0are going to be\u00a0Accounted\u00a0within the\u00a0Following Ways:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<figure id=\"attachment_14562\" aria-describedby=\"caption-attachment-14562\" style=\"width: 974px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/08\/While-Clearing-Out-Debts-the-Following-Ways.jpg\" rel=\"attachment wp-att-14562\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-14562\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/08\/While-Clearing-Out-Debts-the-Following-Ways.jpg\" alt=\"While Clearing Out Debts\" width=\"974\" height=\"818\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/08\/While-Clearing-Out-Debts-the-Following-Ways.jpg 800w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/08\/While-Clearing-Out-Debts-the-Following-Ways-300x252.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/08\/While-Clearing-Out-Debts-the-Following-Ways-768x645.jpg 768w\" sizes=\"(max-width: 974px) 100vw, 974px\" \/><\/a><figcaption id=\"caption-attachment-14562\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">While Clearing Out Debts<\/span><\/figcaption><\/figure>\n<ul>\n<li>Every person\u00a0at risk of\u00a0contribute to the assets of\u00a0a corporate entity\u00a0within the\u00a0event of its being\u00a0tense, and includes holders of shares<\/li>\n<li>Past members\u00a0won&#8217;t\u00a0be required to contribute\u00a0within the\u00a0following circumstance:<\/li>\n<li>If he had ceased to be a member for a period\u00a0of 1\u00a0year or more before the commencement of\u00a0finishing up<\/li>\n<li>If the debt or liability of\u00a0the corporate\u00a0was contracted or incurred after he ceased to be a member<\/li>\n<li>In\u00a0a corporate entity\u00a0limited by shares, any past or present member\u00a0isn&#8217;t\u00a0required to contribute in\u00a0way over\u00a0the quantity, if any, unpaid on the shares in respect of which\u00a0he&#8217;s\u00a0liable\u00a0intrinsically\u00a0member.<\/li>\n<li>In\u00a0a corporate entity\u00a0limited by guarantee, a past or present member\u00a0isn&#8217;t\u00a0required to contribute an amount which is in\u00a0far more than\u00a0the number\u00a0undertaken to be contributed by him to the assets of\u00a0the corporate\u00a0within the\u00a0event of its being\u00a0tense.<\/li>\n<li>If\u00a0the current\u00a0members are\u00a0ready to\u00a0satisfy the contributors required to be made by them under the Act.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Removal_of_companys_name_Application_to_be_made_to_ROC_C-PACE\"><\/span><span style=\"color: #000080;\"><strong>Removal of company\u2019s name <\/strong><\/span><span style=\"color: #000080;\"><strong>Application\u00a0<\/strong><\/span><span style=\"color: #000080;\"><strong>to be made to ROC\u00a0 C-PACE<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"color: #000080;\"><strong><img loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-image-24540\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/08\/Removal-of-companys-name-Application-to-be-made-to-ROC-C-PACE..jpeg\" alt=\"Removal of company\u2019s name Application\u00a0to be made to ROC\u00a0 C-PACE.\" width=\"852\" height=\"474\" \/><\/p>\n<p><\/strong><\/span>Companies (Removal of Names of Companies from the Register of Companies) Amendment Rules, 2023 have been Issued by the MCA. According to the new rules, an application for the removal of a company&#8217;s name must now be submitted in Form STK-2 along with the specified payments to the &#8216;Centre for Processing Accelerated Corporate Exit (CPACE). Earlier, such an application had to be made to the Regional ROC.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Key_Points_of_new_revised_Rules_and_form_under_Companies_Removal_of_Names_of_Companies_from_the_Register_of_Companies_Amendment_Rules_2023\"><\/span><span style=\"color: #000080;\"><strong>Key Points of new revised Rules and form under\u00a0<\/strong><\/span><span style=\"color: #000080;\"><strong>Companies (Removal of Names of Companies from the Register of Companies) Amendment Rules, 2023<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>In addition, changes were made to forms STK-2, STK-6, and STK-7. The notification will take effect on May 1, 2023.<\/li>\n<li>Rule 4 (1) relating to Application for removal of name of company has been revised which says that an application for removal of name of company under Section 248 (2) will now be made to the Registrar, Centre for Processing Accelerated Corporate Exit in Form No. STK-2 with a fee amounting to Rs. 10,000.<\/li>\n<li>Rule 4 (3-A) relating to Application for removal of name of company has been inserted. The Registrar, Centre for Processing Accelerated Corporate Exit will be established under Section 396 (1) and this Registrar of Companies has the power of exercising functional jurisdiction of processing and disposal of applications made in Form No. STK-2 and all matters related to Section 248 having territorial jurisdiction all over India.<\/li>\n<li>Form No. STK- 2 relating to \u201cApplication by company to ROC for removing its name from register of companies\u201d has been revised.<\/li>\n<li>ROC -Form No. STK- 6 (Public Notice) has been revised.<\/li>\n<li>Form No. STK- 7 relating to \u201cNotice of Striking Off and Dissolution\u201d has been revised.<\/li>\n<\/ul>\n<p>We at Rajput Jain and Associates are helping entrepreneurs in various legal, accounting, and secretarial requirements that come up from time to time. we&#8217;d be very happy to assist you -&gt; Let&#8217;s connect!<\/p>\n<p><strong>Popular blog:-<\/strong><\/p>\n<ul>\n<li><a href=\"https:\/\/carajput.com\/blog\/new-online-filing-eform-dir-3-ekyc-directors-for-fy-2019-20\/\">New Online filing eForm DIR-3 eKYC Directors<\/a><\/li>\n<li><a href=\"https:\/\/carajput.com\/blog\/compliance-for-foreign-subsidiary-companies-in-india\/\">Compliance for Foreign Subsidiary Companies in India<\/a><\/li>\n<li><a href=\"https:\/\/carajput.com\/blog\/closure-of-subsidiary-company\/\">CLOSURE OF SUBSIDIARY COMPANY<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Overview on Winding up of a Company BRIEF INTRODUCTION Winding up\u00a0is the process involving\u00a0liquidation of Company\u2019s assets which are collected and sold\u00a0so as\u00a0to pay the debts incurred. Under the winding up process firstly the debts, expenses and costs are paid and any remaining amount is distributed among the shareholders. Once\u00a0the corporate\u00a0is liquidated\u00a0it&#8217;s\u00a0formally dissolved\u00a0and also the\u00a0Company &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8789],"tags":[9993],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/14555"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=14555"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/14555\/revisions"}],"predecessor-version":[{"id":24541,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/14555\/revisions\/24541"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=14555"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=14555"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=14555"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}