{"id":568,"date":"2015-11-03T09:13:01","date_gmt":"2015-11-03T09:13:01","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=568"},"modified":"2022-01-27T16:56:06","modified_gmt":"2022-01-27T11:26:06","slug":"winding-up-of-private-limited-company","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/winding-up-of-private-limited-company\/","title":{"rendered":"Winding up of private limited 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-69f535bab55e7\" 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-69f535bab55e7\"  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\/winding-up-of-private-limited-company\/#WINDING_UP_OF_PRIVATE_LIMITED_COMPANY\" title=\"WINDING UP OF PRIVATE\u00a0LIMITED COMPANY\">WINDING UP OF PRIVATE\u00a0LIMITED 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\/winding-up-of-private-limited-company\/#WINDING_UP\" title=\"WINDING UP\">WINDING UP<\/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\/winding-up-of-private-limited-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-4\" href=\"https:\/\/carajput.com\/blog\/winding-up-of-private-limited-company\/#ADVANTAGES_OF_WINDING_UP\" title=\"ADVANTAGES\u00a0OF\u00a0WINDING UP\u00a0\">ADVANTAGES\u00a0OF\u00a0WINDING UP\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\/winding-up-of-private-limited-company\/#CHECKLIST_RULES_FOR_WINDING_UP\" title=\"CHECKLIST RULES FOR\u00a0WINDING UP\u00a0\">CHECKLIST RULES FOR\u00a0WINDING UP\u00a0<\/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\/winding-up-of-private-limited-company\/#WINDING_UP_OF_PRIVATE_LIMITED_COMPANY-2\" title=\"WINDING UP OF PRIVATE\u00a0LIMITED COMPANY\">WINDING UP OF PRIVATE\u00a0LIMITED COMPANY<\/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\/winding-up-of-private-limited-company\/#VOLUNTARY_WINDING_UP_OF_COMPANY\" title=\"VOLUNTARY\u00a0WINDING UP\u00a0OF COMPANY \">VOLUNTARY\u00a0WINDING UP\u00a0OF COMPANY <\/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\/winding-up-of-private-limited-company\/#PROCESS_OF_MEMBERS_VOLUNTARY_WINDING_UP_OF_COMPANY\" title=\"PROCESS OF MEMBERS\u2019 VOLUNTARY WINDING UP OF COMPANY \">PROCESS OF MEMBERS\u2019 VOLUNTARY WINDING UP OF COMPANY <\/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\/winding-up-of-private-limited-company\/#PROCESS_OF_CREDITORS_VOLUNTARY_WINDING_UP_OF_COMPANY\" title=\"PROCESS OF CREDITORS\u2019 VOLUNTARY WINDING UP OF COMPANY \">PROCESS OF CREDITORS\u2019 VOLUNTARY WINDING UP OF COMPANY <\/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\/winding-up-of-private-limited-company\/#STEP-BY-STEP_PROCEDURE_FOR_VOLUNTARY_WINDING_UP_OF_COMPANY\" title=\"STEP-BY-STEP PROCEDURE FOR VOLUNTARY\u00a0WINDING UP OF COMPANY \">STEP-BY-STEP PROCEDURE FOR VOLUNTARY\u00a0WINDING UP OF COMPANY <\/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\/winding-up-of-private-limited-company\/#COMPULSORY_WINDING_UP_OF_COMPANY\" title=\"COMPULSORY WINDING UP OF COMPANY \">COMPULSORY WINDING UP OF COMPANY <\/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\/winding-up-of-private-limited-company\/#PROCEDURE_FOR_COMPULSORY_WINDING_UP_OF_COMPANY\" title=\"PROCEDURE FOR COMPULSORY\u00a0WINDING UP OF COMPANY \">PROCEDURE FOR COMPULSORY\u00a0WINDING UP OF COMPANY <\/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\/winding-up-of-private-limited-company\/#DOCUMENTATION_FOR_THE_CLOSURE_OF_THE_COMPANY\" title=\"DOCUMENTATION FOR THE CLOSURE OF THE COMPANY\">DOCUMENTATION FOR THE CLOSURE OF THE COMPANY<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<figure id=\"attachment_15132\" aria-describedby=\"caption-attachment-15132\" style=\"width: 982px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/11\/WINDING-UP-OF-PRIVATE-LIMITED-COMPANY.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-15132\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/11\/WINDING-UP-OF-PRIVATE-LIMITED-COMPANY.jpg\" alt=\"WINDING UP OF PRIVATE\u00a0LIMITED COMPANY\" width=\"982\" height=\"468\" \/><\/a><figcaption id=\"caption-attachment-15132\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">WINDING UP OF PRIVATE\u00a0LIMITED COMPANY<\/span><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"WINDING_UP_OF_PRIVATE_LIMITED_COMPANY\"><\/span><a href=\"https:\/\/www.caindelhiindia.com\/blog\/a-faster-way-to-exit-route-for-the-defunct-companies-shout-down-your-defunct-companies\/\"><span style=\"color: #000080;\"><strong>WINDING UP OF PRIVATE\u00a0LIMITED COMPANY<\/strong><\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"color: #000080;\"><strong>BRIEF INTRODUCTION<\/strong><\/span><\/p>\n<p>Liquidation\u00a0is basically a\u00a0process, being initiated by\u00a0a corporation, in order to shut\u00a0their operations.\u00a0The corporate entity\u00a0may\u00a0plan to\u00a0wind up\u00a0because of\u00a0various reasons\u00a0like\u00a0unwillingness to continue with the operations, insolvency\u00a0and so\u00a0on.\u00a0As the\u00a0term suggests, liquidation of\u00a0a corporation\u00a0refers to liquidating the assets of\u00a0the corporate entity. By initiating the liquidation process,\u00a0the corporate entity\u00a0may sell its assets\u00a0to satisfy\u00a0obligations and repay liabilities.<\/p>\n<p>Where an organization\u00a0is liquidated\u00a0due the reason of\u00a0bankruptcy, the liquidator is required to sell their assets, in order to repay all pending liabilities. In case, any amount remains, after repayment to the creditors, the same gets distributed among the shareholders of\u00a0the corporate entity.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"WINDING_UP\"><\/span><span style=\"color: #000080;\"><strong>WINDING UP<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Winding-up involves complete shutdown of all business operations, transactions and thereby involves selling off of the company\u2019s assets to other individuals or entities, in order to\u00a0satisfy\u00a0company\u2019s debt.<\/li>\n<li>Once the debts\u00a0are\u00a0cleared off, the remaining assets of\u00a0the corporate entity\u00a0will be\u00a0shared among shareholders concerning the capital invested by them<\/li>\n<\/ul>\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<p>The winding-up of\u00a0the corporate entity\u00a0can be\u00a0executed in two\u00a0different ways<\/p>\n<ol>\n<li>Compulsory\u00a0Winding Up: Compulsory winding up of\u00a0an organization\u00a0takes place through an order of a tribunal or a court, or by passing of special resolution by\u00a0the directors, which proposes a court intervention. Similarly, it can execute by filing a petition with a court or a tribunal, and the same be made by the official person of\u00a0the corporate entity. In case\u00a0the corporate entity\u00a0has indulged in any fraudulent\/unlawful activities, it\u00a0is often\u00a0winded up<\/li>\n<li>Voluntarily Winding Up: The company requires a resolution from the directors, to dump all assets of the corporate entity or to transfer the stakes to a different entity.<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"ADVANTAGES_OF_WINDING_UP\"><\/span><span style=\"color: #000080;\"><strong>ADVANTAGES\u00a0OF\u00a0WINDING UP\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<figure id=\"attachment_15142\" aria-describedby=\"caption-attachment-15142\" style=\"width: 895px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/11\/ADVANTAGES-OF-WINDING-UP-..jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-15142\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/11\/ADVANTAGES-OF-WINDING-UP-.-300x184.jpg\" alt=\"ADVANTAGES\u00a0OF\u00a0WINDING UP\u00a0\" width=\"895\" height=\"549\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/11\/ADVANTAGES-OF-WINDING-UP-.-300x184.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/11\/ADVANTAGES-OF-WINDING-UP-..jpg 614w\" sizes=\"(max-width: 895px) 100vw, 895px\" \/><\/a><figcaption id=\"caption-attachment-15142\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">ADVANTAGES\u00a0OF\u00a0WINDING UP<\/span><\/figcaption><\/figure>\n<ul>\n<li>Free from debts after liquidation: Once the liquidation process is over,\u00a0the directors\u00a0and all the\u00a0company officials are free from all creditor liabilities and pressure.<\/li>\n<li>Avoiding\u00a0legal action\u00a0against the company: If the resolution is passed voluntarily by directors,\u00a0they&#8217;re going to\u00a0neglect\u00a0legal proceeding\u00a0taken by the court or the tribunal,\u00a0and provide\u00a0a platform to company directors to\u00a0target\u00a0other business opportunities.<\/li>\n<li>Comparingly low cost charged for liquidation:\u00a0the cost\u00a0or expenses involved\u00a0within the\u00a0liquidation process\u00a0is comparatively\u00a0low, as charges\u00a0are\u00a0applicable on the sale of assets.<\/li>\n<li>All lease agreements\u00a0are\u00a0cancelled: If any company or entity has entered into a lease for a prescribed time, during the liquidation process,\u00a0it&#8217;ll\u00a0terminate all the terms and conditions of the lease. If any penalty\u00a0must\u00a0be paid,\u00a0it&#8217;ll\u00a0be deducted from the sale of assets.<\/li>\n<li>Advantages for creditors: After a prolonged struggle, creditors will be benefited from the liquidation process as they&#8217;ll be eligible for a default payment, with relation to the proposition of credits given by all creditors.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"CHECKLIST_RULES_FOR_WINDING_UP\"><\/span><span style=\"color: #000080;\"><strong>CHECKLIST RULES FOR\u00a0WINDING UP\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Board meetings should be convened for the approval of\u00a0winding up\u00a0an organization.<\/li>\n<li>A notice should be produced in written form, in order to convene a general meeting, for passing of a resolution on the\u00a0winding up\u00a0procedure.<\/li>\n<li>Once order is passed, an official\u00a0liquidator or insolvency professional be appointed.<\/li>\n<li>The\u00a0income tax\u00a0department should be acknowledged with\u00a0reference to\u00a0the resolution passed at the meeting for voluntary\u00a0winding up\u00a0of\u00a0the corporate entity.<\/li>\n<li>Simultaneously, a No Objection Certificate (NOC) be obtained from the\u00a0Income Tax\u00a0Department.<\/li>\n<li>If the creditors are in majority, then the creditors meeting should be conducted to approve the resolution passed\u00a0within the\u00a0general meeting;\u00a0provided that\u00a0creditors are owed 2\/3rd of\u00a0the corporate entity\u00a0debts.<\/li>\n<li>Before the initiation of the winding-up\u00a0process, an intimation be provided to the Insolvency and Bankruptcy Board of India (IBBI), and the same be made within 7 days from the date of passing of resolution.<\/li>\n<li>Also, an announcement be made to\u00a0the general public, within 14 days from the date of passing of the resolution, and the said announcement be made in official\u00a0gazette, one English newspaper, and one local newspaper, where the registered company is located.<\/li>\n<li>The whole process of winding up is required to be completed within 12 months from the initiation of liquidation.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"WINDING_UP_OF_PRIVATE_LIMITED_COMPANY-2\"><\/span><span style=\"color: #000080;\"><strong>WINDING UP OF PRIVATE\u00a0LIMITED COMPANY<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-16712\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/11\/How-to-Close-a-Private-Company-in-India1-300x169.jpg\" alt=\"How-to-Close-a-Private-Company-in-India\" width=\"928\" height=\"523\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/11\/How-to-Close-a-Private-Company-in-India1-300x169.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/11\/How-to-Close-a-Private-Company-in-India1-1024x576.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/11\/How-to-Close-a-Private-Company-in-India1-768x432.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/11\/How-to-Close-a-Private-Company-in-India1-800x450.jpg 800w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/11\/How-to-Close-a-Private-Company-in-India1.jpg 1280w\" sizes=\"(max-width: 928px) 100vw, 928px\" \/><\/p>\n<p>Winding up of\u00a0a private\u00a0company\u00a0can be\u00a0done in\u00a02\u00a0alternative ways. These are<\/p>\n<ul>\n<li>Selling company shares: By selling\u00a0the majority of the\u00a0company shares\u00a0to a different\u00a0person or entity, the shareholders will avoid the burden of debts. Hence, voting powers, rights, and responsibilities\u00a0are going to be\u00a0laid on the acquired person or the entity.<\/li>\n<li>Voluntary wind up: Voluntary wind up may be commenced either by special resolution or a resolution taken during a general body meeting. By violating any of the terms and conditions of the memorandum of association (MOA), the winding will be executed. Similarly, because of insufficient financial funds or inability to clear the debts, an organization are often winded up.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"VOLUNTARY_WINDING_UP_OF_COMPANY\"><\/span><span style=\"color: #000080;\"><strong>VOLUNTARY\u00a0WINDING UP\u00a0OF COMPANY <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li>Members\u2019 Voluntary\u00a0winding up<\/li>\n<\/ol>\n<p>Where a corporation\u00a0is termed as solvent, i.e., they are able to pay their debts, at the time of closure and its directors make a voluntary declaration for\u00a0the same,\u00a0it is known as the\u00a0Members\u2019 Voluntary\u00a0winding up. Such declaration should bear the following characteristics &#8211;<\/p>\n<ul>\n<li>It must be produced and presented on an affidavit.<\/li>\n<li>It must be made within 5 weeks preceding the date of the resolution\u00a0gone\u00a0the corporate entity\u00a0to\u00a0wind up. The same be submitted to the registrar within the prescribed\u00a0due date.<\/li>\n<li>A copy of\u00a0the latest\u00a0and audited profit &amp; loss statement of\u00a0the corporate entity\u00a0(as on a practicable date before the declaration of solvency) should accompany the declaration.<\/li>\n<li>The latest Balance Sheet and Statement of Assets &amp; Liabilities of the company, shall be enclosed with the declaration.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"PROCESS_OF_MEMBERS_VOLUNTARY_WINDING_UP_OF_COMPANY\"><\/span><span style=\"color: #000080;\"><strong>PROCESS OF MEMBERS\u2019 VOLUNTARY WINDING UP <\/strong><strong>OF COMPANY <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Solvency declaration, made by\u00a0the directors.<\/li>\n<li>The statutory declaration to the Registrar<\/li>\n<li>Appointment of liquidator<\/li>\n<li>Collection of the assets belonging to the corporate entity, payment of its liabilities and distribution of the balance of the proceeds among the contributors.<\/li>\n<\/ul>\n<ol start=\"2\">\n<li>Creditors&#8217; Voluntary\u00a0winding up<\/li>\n<\/ol>\n<p>If the solvency declaration\u00a0isn&#8217;t\u00a0made by\u00a0the directors\u00a0and submitted to the registrar,\u00a0the corporate entity\u00a0is presumed to be insolvent. In such a case, the creditors must meet (usually after\u00a0the corporate entity\u00a0general meeting) to pass the resolution for\u00a0winding up\u00a0and liquidation of\u00a0the corporate entity.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"PROCESS_OF_CREDITORS_VOLUNTARY_WINDING_UP_OF_COMPANY\"><\/span><span style=\"color: #000080;\"><strong>PROCESS OF CREDITORS\u2019 VOLUNTARY WINDING UP OF COMPANY <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The general meeting of\u00a0the corporate entity\u00a0passes a resolution to\u00a0wind up\u00a0the corporate entity\u00a0operations<\/li>\n<li>A meeting of the creditors must\u00a0happen<\/li>\n<li>The members and creditors are required to appoint a liquidator or\u00a0a group\u00a0of liquidators.<\/li>\n<li>They must\u00a0incorporate a committee of inspection\u00a0as well<\/li>\n<li>The process of winding shall be initiated, in accordance with the provisions of law.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"STEP-BY-STEP_PROCEDURE_FOR_VOLUNTARY_WINDING_UP_OF_COMPANY\"><\/span><span style=\"color: #000080;\"><strong>STEP-BY-STEP PROCEDURE FOR VOLUNTARY\u00a0WINDING UP OF COMPANY <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>With\u00a0reference to\u00a0the companies\u2019\u00a0act, 1961, the resolution of the\u00a0committee meeting\u00a0is crucial\u00a0to start out\u00a0the\u00a0completing\u00a0process.<\/li>\n<li>In a special resolution, a majority of 3\/4th of\u00a0the corporate entity\u00a0shareholders should register their vote on the side of\u00a0winding up\u00a0the corporate entity.<\/li>\n<li>Similarly, the company\u2019s creditors are required to approve the resolution made for\u00a0winding up, and that too without any complications.<\/li>\n<li>A \u201cDeclaration of Solvency\u201d along with the details of outstanding debts, be enclosed together with\u00a0the auditor report, regarding total assets of\u00a0the corporate entity\u00a0and it should be forwarded to the RoC (Registrar of Companies).<\/li>\n<li>Now the official liquidator\u00a0is\u00a0appointed to perform the\u00a0winding up\u00a0process from the date of passing the resolution.<\/li>\n<li>After the resolution has been passed, the liquidator should open a\u00a0bank account\u00a0within a period\u00a0of 1\u00a0month.<\/li>\n<li>The liquidator is required to open a\u00a0bank account\u00a0in any of the scheduled bank, and the same shall be in the\u00a0name with, the prefix \u201cthe name of the company\u201d followed by \u201cvoluntary liquidation\u201d.<\/li>\n<li>The liquidator will collect all the reliable documents and prepare a report consisting\u00a0of final\u00a0accounts and present this\u00a0in a very\u00a0general meeting for approval. Here,\u00a0the bulk\u00a0of members should pass this resolution.<\/li>\n<li>After compiling all\u00a0the mandatory\u00a0documents,\u00a0the ultimate\u00a0report\u00a0is\u00a0sent to the tribunal for reference.<\/li>\n<li>After examining the credibility of the report, the tribunal will pass a decree for the dissolution of\u00a0the corporate entity.<\/li>\n<li>A copy of that decree\u00a0is\u00a0forwarded to RoC by the liquidator within 30 days of the order dated.<\/li>\n<li>Now the RoC will mandate the\u00a0finishing up\u00a0of\u00a0the corporate entity\u00a0and take away\u00a0the name of that company from the registry.<\/li>\n<li>Simultaneously, the RoC will publish this order\u00a0within the\u00a0official gazette of India.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"COMPULSORY_WINDING_UP_OF_COMPANY\"><\/span><span style=\"color: #000080;\"><strong>COMPULSORY WINDING UP OF COMPANY <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Where any company, registered in India, is compulsorily winded up by the order of the tribunal or court, the same is expected to have indulged in any fraudulent\/ unlawful activities. In such a case, the petition\u00a0may be\u00a0filed by<\/p>\n<ul>\n<li>The company itself<\/li>\n<li>The Registrar of companies (RoC)<\/li>\n<li>The creditors of\u00a0the corporate entity<\/li>\n<li>The central\/state governments<\/li>\n<li>The contributors<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"PROCEDURE_FOR_COMPULSORY_WINDING_UP_OF_COMPANY\"><\/span><span style=\"color: #000080;\"><strong>PROCEDURE FOR COMPULSORY\u00a0WINDING UP OF COMPANY <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The petition to the tribunal should be filed\u00a0together with\u00a0the statement of affairs, of the disputed company. Once the scrutinization of the credibility of the petition filed is done, the tribunal may accept or reject the aforesaid petition.<\/li>\n<li>Here, the liquidator\u00a0is\u00a0appointed by the tribunal itself.<\/li>\n<li>The liquidator will execute all assets of\u00a0the corporate entity, examine the book of accounts, and compile into a draft\/report.<\/li>\n<li>These reports are to be forwarded to the tribunal after the\u00a0carrying out\u00a0committee had accepted\u00a0the same.<\/li>\n<\/ul>\n<p>Rajput Jain and Associates \u2019s Procedure for\u00a0winding up\u00a0a private\u00a0limited company<\/p>\n<ul>\n<li>Declaration To ROC<\/li>\n<\/ul>\n<p>The statement of accounts must be submitted within a month before the submission of the applying to wind up the corporate entity. This is often a declaration to the Registrar of Companies that the contents of the application are only to be considered, providing that the corporate entity has no other assets or liabilities.<\/p>\n<ul>\n<li>Submit Documents<\/li>\n<\/ul>\n<p>Within a month of submitting the statement of accounts, the applying must be submitted together with the documents mentioned above. Our representatives will guide you through the complete procedure.<\/p>\n<ul>\n<li>Final Closure<\/li>\n<\/ul>\n<p>It takes a minimum of two to 3 months to complete the closure of your company, but it could take much longer, as per the findings of the liquidator appointed.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"DOCUMENTATION_FOR_THE_CLOSURE_OF_THE_COMPANY\"><\/span><span style=\"color: #000080;\"><strong>DOCUMENTATION FOR THE CLOSURE OF THE COMPANY<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The documents required for the closure of\u00a0the corporate entity\u00a0are;<\/p>\n<ul>\n<li>PAN card of\u00a0the corporate entity<\/li>\n<li>Certificate of closure of the company\u2019s\u00a0bank account.<\/li>\n<li>An indemnity bond be made, and the same be notarized by\u00a0the directors.<\/li>\n<li>Latest statement of company accounts.<\/li>\n<li>Statement of accounts\u00a0associated with\u00a0all assets and liabilities of\u00a0the corporate entity, audited by\u00a0chartered accountant\u00a0(CA).<\/li>\n<li>A copy of the resolution passed by the board members.<\/li>\n<li>Application for removing the name of the corporate entity.<\/li>\n<\/ul>\n<p><iframe loading=\"lazy\" title=\"Winding Up of Company | Procedure for Winding up | Difference between winding up &amp; Dissolution.\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/ZlkyFRu_oLE?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe><\/p>\n","protected":false},"excerpt":{"rendered":"<p>WINDING UP OF PRIVATE\u00a0LIMITED COMPANY BRIEF INTRODUCTION Liquidation\u00a0is basically a\u00a0process, being initiated by\u00a0a corporation, in order to shut\u00a0their operations.\u00a0The corporate entity\u00a0may\u00a0plan to\u00a0wind up\u00a0because of\u00a0various reasons\u00a0like\u00a0unwillingness to continue with the operations, insolvency\u00a0and so\u00a0on.\u00a0As the\u00a0term suggests, liquidation of\u00a0a corporation\u00a0refers to liquidating the assets of\u00a0the corporate entity. By initiating the liquidation process,\u00a0the corporate entity\u00a0may sell its assets\u00a0to satisfy\u00a0obligations &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[9996,9995],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/568"}],"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=568"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/568\/revisions"}],"predecessor-version":[{"id":21571,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/568\/revisions\/21571"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=568"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=568"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=568"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}