{"id":22717,"date":"2022-07-31T16:56:35","date_gmt":"2022-07-31T11:26:35","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=22717"},"modified":"2022-09-15T16:25:31","modified_gmt":"2022-09-15T10:55:31","slug":"overview-about-closing-of-a-foreign-co-subsidiary","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/overview-about-closing-of-a-foreign-co-subsidiary\/","title":{"rendered":"Overview about Closing of a Foreign Co. Subsidiary"},"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-69d037800dbfa\" 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-69d037800dbfa\"  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-about-closing-of-a-foreign-co-subsidiary\/#CLOSING_OF_A_FOREIGN_COMPANY_SUBSIDIARY\" title=\"CLOSING OF A FOREIGN COMPANY\u00a0SUBSIDIARY \">CLOSING OF A FOREIGN COMPANY\u00a0SUBSIDIARY <\/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-about-closing-of-a-foreign-co-subsidiary\/#PROCEDURE_IN_CASE_OF_VOLUNTARY_STRIKE-OFF\" title=\"PROCEDURE\u00a0IN CASE\u00a0OF VOLUNTARY STRIKE-OFF\">PROCEDURE\u00a0IN CASE\u00a0OF VOLUNTARY STRIKE-OFF<\/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-about-closing-of-a-foreign-co-subsidiary\/#DOCUMENTS_REQUIRED_FOR_CLOSING_OF_FOREIGN_SUBSIDIARY_COMPANY\" title=\"DOCUMENTS REQUIRED FOR CLOSING OF FOREIGN SUBSIDIARY COMPANY\">DOCUMENTS REQUIRED FOR CLOSING OF FOREIGN SUBSIDIARY 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-about-closing-of-a-foreign-co-subsidiary\/#TIME_TAKEN_FOR_CLOSING_OF_SUBSIDIARY_IN_INDIA\" title=\"TIME TAKEN FOR CLOSING OF\u00a0SUBSIDIARY\u00a0IN INDIA\">TIME TAKEN FOR CLOSING OF\u00a0SUBSIDIARY\u00a0IN INDIA<\/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-about-closing-of-a-foreign-co-subsidiary\/#ELIGIBILITY_FOR_APPLYING_FOR_VOLUNTARY_WINDING-UP\" title=\"ELIGIBILITY FOR APPLYING FOR VOLUNTARY WINDING-UP\">ELIGIBILITY FOR APPLYING FOR VOLUNTARY WINDING-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-about-closing-of-a-foreign-co-subsidiary\/#PROCESS_OF_VOLUNTARY_LIQUIDATION\" title=\"PROCESS OF VOLUNTARY LIQUIDATION\">PROCESS OF VOLUNTARY LIQUIDATION<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-22718\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/07\/CLOSING-OF-A-FOREIGN-COMPANY-SUBSIDIARY.jpg\" alt=\"CLOSING OF A FOREIGN COMPANY\u00a0SUBSIDIARY\" width=\"923\" height=\"411\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/07\/CLOSING-OF-A-FOREIGN-COMPANY-SUBSIDIARY.jpg 337w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/07\/CLOSING-OF-A-FOREIGN-COMPANY-SUBSIDIARY-300x134.jpg 300w\" sizes=\"(max-width: 923px) 100vw, 923px\" \/><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"CLOSING_OF_A_FOREIGN_COMPANY_SUBSIDIARY\"><\/span><span style=\"color: #000080;\"><strong>CLOSING OF A <\/strong><strong>FOREIGN COMPANY\u00a0<\/strong><strong>SUBSIDIARY <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Over the past few decades, India has emerged joined of the foremost favourable and preferred option for foreign companies for investments. However, sometimes thanks to commercial or another reasons, foreign company has to close its business operations in India.<\/p>\n<p>Accordingly, an overseas company in India and its subsidiary must remember about the closing process. during this article, we&#8217;ll be discussing about the method of closing of subsidiary in India.<\/p>\n<p><span style=\"color: #000080;\"><strong>PROCESS OF <\/strong><strong>A FOREIGN <\/strong><strong>CLOSURE OF\u00a0COMPANY\u00a0IN INDIA<\/strong><\/span><\/p>\n<p>A\u00a0company\u00a0is required to file\u00a0the subsequent\u00a0forms with the Registrar of Companies for its closure and striking off the name from the registers-<\/p>\n<ol>\n<li>E-Form MGT-14<\/li>\n<li>E-Form STK-2<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"PROCEDURE_IN_CASE_OF_VOLUNTARY_STRIKE-OFF\"><\/span><span style=\"color: #000080;\"><strong>PROCEDURE\u00a0IN CASE\u00a0OF VOLUNTARY STRIKE-OFF<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In case of voluntary closure of\u00a0subsidiary, following procedure must be followed:<\/p>\n<ul>\n<li>The company is required to assign or authorize\u00a0a political candidate\u00a0or a director to commence a\u00a0meeting.<\/li>\n<li>Seven days\u00a0before\u00a0the meeting, a notice for the\u00a0meeting\u00a0intimating the agenda of\u00a0the identical\u00a0must be send to the members.<\/li>\n<li>The\u00a0committee meeting\u00a0must be held and a board resolution should be passed in it regarding closing a\u00a0company.<\/li>\n<li>Intimation about the conduct of Annual General Meeting (AGM) or the Extra-Ordinary General Meeting shall be made.<\/li>\n<li>The general meeting be convened by the Board of Directors and Members of the entity, for passing the Special Resolution.<\/li>\n<li>In\u00a0the subsequent\u00a0step,\u00a0the corporate\u00a0is required to file Form MGT-14 by attaching all\u00a0the desired\u00a0documents.<\/li>\n<li>Next,\u00a0the shape\u00a0STK-2 must be filed by attaching all the supporting documents prescribed by the statutes.<\/li>\n<li>Lastly, the Registrar of Companies verifies all the documents attached with the forms filed by the corporate and checks whether all the terms and conditions are fulfilled for closing of company.<\/li>\n<li>Once all such information and documents are thoroughly checked the ROC commences the method of striking off the corporate from the registers after publishing a public notice as per the provisions of the Insolvency and Bankruptcy Code (IBC), 2016.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"DOCUMENTS_REQUIRED_FOR_CLOSING_OF_FOREIGN_SUBSIDIARY_COMPANY\"><\/span><span style=\"color: #000080;\"><strong>DOCUMENTS REQUIRED FOR CLOSING OF FOREIGN SUBSIDIARY COMPANY<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>While filing the forms for closing of\u00a0subsidiary\u00a0in India, the following documents are required:<\/p>\n<ul>\n<li>Form STK-3, which is the duly notarized bond, made by all the board of directors.<\/li>\n<li>Indemnity bonds in Form STK-3.<\/li>\n<li>Affidavit in Form STK-4.<\/li>\n<li>The certified true copy of the duly signed Special Resolution\u00a0gone by\u00a0the administrators.<\/li>\n<li>A statement regarding the pending litigation and cases (if any) of\u00a0the corporate\u00a0in the\u00a0court of law.<\/li>\n<li>A statement regarding the liabilities and assets of\u00a0the corporate. This\u00a0needs to\u00a0be certified by a practicing\u00a0comptroller.<\/li>\n<li>Copy of the board resolution, authorizing and approving the filing of the forms for closing of their company.<\/li>\n<li>The company must get a no-objection certificate from the concerned\u00a0administrative body\u00a0that governs it.<\/li>\n<li>Copy of the all the relevant order associated with delisting from the exchange (if any).<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"TIME_TAKEN_FOR_CLOSING_OF_SUBSIDIARY_IN_INDIA\"><\/span><span style=\"color: #000080;\"><strong>TIME TAKEN FOR CLOSING OF\u00a0SUBSIDIARY\u00a0IN INDIA<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>On receipt of an application for striking off\u00a0and shutting\u00a0of\u00a0company\u00a0with the Registrar of Company (ROC) through E-Form STK-2, all the documents attached with it are verified thoroughly.<\/li>\n<li>The ROC then publishes a public notice and sends notice to\u00a0the corporate\u00a0and its director.\u00a0in case\u00a0there&#8217;s\u00a0no response from them\u00a0within the\u00a0given timeline, it strikes-off\u00a0the corporate\u00a0name from the registers.\u00a0the entire\u00a0process of closure can take up\u00a0to three\u00a0to 4 months.<\/li>\n<li>In case the Registrar receives any objection regarding the closure of\u00a0company,\u00a0the full\u00a0process can get lengthy or in some cases\u00a0could also be\u00a0rejected by the ROC.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"ELIGIBILITY_FOR_APPLYING_FOR_VOLUNTARY_WINDING-UP\"><\/span><span style=\"color: #000080;\"><strong>ELIGIBILITY FOR APPLYING FOR VOLUNTARY WINDING-UP<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Under\u00a0the supply\u00a0of Section 59(1) of the act,\u00a0an organization\u00a0can choose for closing of\u00a0subsidiary\u00a0as under-<\/p>\n<ol>\n<li>One who intends to liquidate\u00a0the corporate\u00a0voluntarily<\/li>\n<li>an organization that has not committed any offence or default.<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"PROCESS_OF_VOLUNTARY_LIQUIDATION\"><\/span><span style=\"color: #000080;\"><strong>PROCESS OF VOLUNTARY <a href=\"https:\/\/www.caindelhiindia.com\/blog\/liquidation-estate-under-ibc\/\">LIQUIDATION<\/a><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-22719\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/07\/PROCESS-OF-VOLUNTARY-LIQUIDATION.jpg\" alt=\"PROCESS OF VOLUNTARY LIQUIDATION\" width=\"818\" height=\"470\" \/><\/p>\n<p>The liquidation process used for voluntary closing of\u00a0company\u00a0has\u00a0the subsequent\u00a0steps involved-Public Announcement: The liquidator has got to make an announcement publicly within 5 days of his\/her appointment. this is often necessary for submitting the claims regarding liquidation within 30 days. Such a notice announcement must be published in one regional or local daily newspaper and one daily English newspaper in the jurisdiction of the place of business of the corporate registration. the identical must be provided in the company\u2019s official website in addition.<\/p>\n<p>The public notice or announcement should contain the subsequent details<\/p>\n<ul>\n<li>Date of commencement of the liquidation.<\/li>\n<li>Name and address of the liquidator.<\/li>\n<li>Contact details and\u00a0number\u00a0of the liquidation.<\/li>\n<li>Last date of submission of any claim by the members or shareholders or\u00a0the other\u00a0related person.<\/li>\n<li>Mode of submitting any such claims.<\/li>\n<li>Opening of a\u00a0checking account:\u00a0one in all\u00a0the foremost\u00a0important steps in closing of\u00a0company\u00a0is to open\u00a0a brand-new\u00a0bank account with a scheduled or authorized bank. The account opened must be named after\u00a0the corporate\u00a0or\u00a0the company\u00a0person\u00a0involved\u00a0word \u2018in liquidation\u201d at\u00a0the top.<\/li>\n<\/ul>\n<p>This account is employed for receiving or making payments against the settled amount. The liquidating company must use only this account for any more transactions and settlements.<\/p>\n<p><span style=\"color: #000080;\"><strong>HOW RAJPUT JAIN &amp; ASSOCIATES, HELP<\/strong><\/span><\/p>\n<p>We at Rajput Jain &amp; Associates, help your business with all the procedures and processes. Our team of professional and experts guide business houses and company personals with variety of services like India Entry registration, wholly-owned subsidiary or subsidiary registration and closure process and other services. please visit www.carajput.com. or call us +91-9-555-555-480<\/p>\n<ul>\n<li><em><a href=\"https:\/\/carajput.com\/blog\/major-compliances-due-date-of-annual-filings-of-every-limited-liability-partnerships-llps-for-the-year-2017-18\/\">Post-Incorporation Compliances Filling of LLP<\/a><\/em><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>CLOSING OF A FOREIGN COMPANY\u00a0SUBSIDIARY Over the past few decades, India has emerged joined of the foremost favourable and preferred option for foreign companies for investments. However, sometimes thanks to commercial or another reasons, foreign company has to close its business operations in India. Accordingly, an overseas company in India and its subsidiary must remember &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[9969],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/22717"}],"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=22717"}],"version-history":[{"count":4,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/22717\/revisions"}],"predecessor-version":[{"id":23247,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/22717\/revisions\/23247"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=22717"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=22717"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=22717"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}