{"id":27861,"date":"2024-11-21T18:24:39","date_gmt":"2024-11-21T12:54:39","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=27861"},"modified":"2024-11-21T19:37:04","modified_gmt":"2024-11-21T14:07:04","slug":"mca-ease-of-closing-a-business-in-india","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/mca-ease-of-closing-a-business-in-india\/","title":{"rendered":"MCA : Ease of closing a Business in India"},"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-69d28b4027cfe\" 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-69d28b4027cfe\"  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\/mca-ease-of-closing-a-business-in-india\/#MCA_Ease_of_closing_a_Business_in_India\" title=\"MCA : Ease of closing a Business in India\">MCA : Ease of closing a Business in India<\/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\/mca-ease-of-closing-a-business-in-india\/#Company_Closing_via_Strike_Off_Mode\" title=\"Company Closing via Strike Off Mode:\u00a0\">Company Closing via Strike Off Mode:\u00a0<\/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\/mca-ease-of-closing-a-business-in-india\/#Pre-requisites_to_the_application_for_Strike_Off\" title=\"Pre-requisites to the application for Strike Off\">Pre-requisites to the application for Strike Off<\/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\/mca-ease-of-closing-a-business-in-india\/#What_is_covered_in_the_package\" title=\"What is covered in the package?\u00a0\">What is covered in the package?\u00a0<\/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\/mca-ease-of-closing-a-business-in-india\/#Company_Closing_via_NCLT_Liquidation_made\" title=\"Company Closing via NCLT Liquidation made:\u00a0\">Company Closing via NCLT Liquidation made:\u00a0<\/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=\"798\" height=\"355\" 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: 798px) 100vw, 798px\" \/><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"MCA_Ease_of_closing_a_Business_in_India\"><\/span><span style=\"color: #000080;\">MCA : Ease of closing a Business in India<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Company_Closing_via_Strike_Off_Mode\"><\/span><span style=\"color: #000080;\"><b data-olk-copy-source=\"MessageBody\">Company Closing via Strike Off Mode:\u00a0<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div>The company can choose the\u00a0\u00a0Strike Off Mode. This option is applicable for defunct companies that fail to commence operations within one year of incorporation. Cease business for two years before filing. Have unpaid subscription amounts with no declaration within 180 days. In this process, Copany files an application with necessary documents, like No objection certificates, indemnity bonds from directors., and a certified statement of accounts (not older than 30 days). this is simpler and cost-effective but requires up-to-date compliance for two years.<\/div>\n<h3><span class=\"ez-toc-section\" id=\"Pre-requisites_to_the_application_for_Strike_Off\"><\/span><span style=\"color: #000080;\"><b>Pre-requisites to the application for Strike Off<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><i>No Debt\/Laon in the Company<\/i><\/li>\n<li><i>No dues to any statutory authority<\/i><\/li>\n<li><i>No liabilities in the company.<\/i><\/li>\n<li><i>No investigation or<\/i>\u00a0prosecution is pending in any court.<\/li>\n<li><i>No Public Deposits:<\/i><\/li>\n<li><i>Filing of pending forms:<\/i> All overdue returns, such as Form No. AOC-4 or AOC-4 XBRL, as the case may be, and Form No. MGT-7, up to the end of the financial year in which the company ceased to carry its business operations, shall be filed before making an application<\/li>\n<\/ul>\n<div>For closure of your the company, we have to compliance the filling formalities of ROC filling and complete the company closing formalities after ROC filling &amp; complete the closing process of the company:<\/div>\n<div><\/div>\n<div>As per Section 248(1)(c): If any company is not carrying on any business or operation for a period of 2 immediately preceding Financial Years, then it may go for a voluntary strike-off by\u00a0 filing Form STK-2 with RoC fees of Rs. 10,000\/- with the following documents:<b>\u00a0<\/b><\/div>\n<ul data-editing-info=\"{&quot;orderedStyleType&quot;:1}\">\n<li>Board Resolution<\/li>\n<li>Consent of Shareholders<\/li>\n<li>Affidavits from the Directors<\/li>\n<li>Indemnity from the Directors<\/li>\n<li>Self-attested PAN Card of Directors<\/li>\n<li>Self-attested Address Proof of Directors<\/li>\n<li>Proof for closure of Bank Account<\/li>\n<li>Statement of Account certified by Directors and CA not later than 30 days<\/li>\n<\/ul>\n<div>Please note before applying for the closure of the company, any charge or security interest must not be existed against the company as of the date, and the bank account of the company must be closed.<\/div>\n<h3><span class=\"ez-toc-section\" id=\"What_is_covered_in_the_package\"><\/span><span style=\"color: #000080;\"><b>What is covered in the package?\u00a0<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-editing-info=\"{&quot;orderedStyleType&quot;:1}\">\n<li>Drafting of resolution and letter for Bank Closure<\/li>\n<li>Preparation of Statement of Assets and Liability<\/li>\n<li>Drafting of Partners Closure Resolution<\/li>\n<li>Drafting of Affidavit &amp; Indemnity Bond<\/li>\n<li>Application Filing with ROC &amp; Followup<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Company_Closing_via_NCLT_Liquidation_made\"><\/span><span style=\"color: #000080;\"><b>Company Closing via NCLT Liquidation made:\u00a0<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-6369\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/06\/images.jpg\" alt=\"www.carajput.com;Penality imposed byIBBI\" width=\"695\" height=\"404\" \/><\/p>\n<div><span style=\"color: #000080;\"><b>Voluntary Liquidation (Section 59, IBC, 2016)\u00a0<\/b><\/span><\/div>\n<div><\/div>\n<div>Dissolution of a Company Post-Liquidation :\u00a0A streamlined process under the Insolvency and Bankruptcy Code (IBC)\u00a0for solvent companies.<\/div>\n<ul>\n<li>Complete Liquidation of Assets: The liquidator ensures all assets of the company are identified, valued, and liquidated. Proceeds are distributed to creditors, shareholders, or stakeholders in accordance with the hierarchy specified in the Insolvency and Bankruptcy Code, 2016\u00a0(IBC).\u00a0\u00a0In this process Company Declaration of solvency by directors (no liabilities, no intent to defraud)., Special resolution appointing a liquidator. Notify Registrar and Insolvency and Bankruptcy Board of India (IBBI). Liquidation within 90-270 days (depending on creditor involvement). Submit a final report to the NCLT for dissolution.<\/li>\n<li>Once the liquidation process is complete, the liquidator files an application for dissolution\u00a0with the National Company Law Tribunal (NCLT). The application includes:\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Details of the liquidation process.<\/li>\n<li>Confirmation that all claims and dues have been settled.<\/li>\n<li>A final report as per the IBC (Regulation 45(3) of the Liquidation Process Regulations).<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li>The NCLT examines the application to ensure compliance with laws and regulations. Upon satisfaction, the tribunal passes a dissolution order\u00a0under Section 54 of the IBC. Once the order is passed, the company ceases to exist as a legal entity. The name of the company is struck off from the records of the Registrar of Companies.\u00a0The liquidator sends a copy of the dissolution order to the Registrar of Companies\u00a0and other relevant authorities for record-keeping and closure of legal formalities.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>MCA : Ease of closing a Business in India Company Closing via Strike Off Mode:\u00a0 The company can choose the\u00a0\u00a0Strike Off Mode. This option is applicable for defunct companies that fail to commence operations within one year of incorporation. Cease business for two years before filing. Have unpaid subscription amounts with no declaration within 180 &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10008],"tags":[10191],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/27861"}],"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=27861"}],"version-history":[{"count":3,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/27861\/revisions"}],"predecessor-version":[{"id":27864,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/27861\/revisions\/27864"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=27861"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=27861"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=27861"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}