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A firm is wound up when all commercial activities are stopped, transactions are stopped, and all company assets are sold to other people or businesses in order to pay off any outstanding debts. When the company's obligations are paid off, the residual assets will be distributed to shareholders in proportion to their capital investments.
There are two methods that can be used to wind up the business. Mandatory winding up: A special resolution passed by the directors during the company's board meeting that requests a court intervention might be disregarded in favor of the compulsory winding up of a company being carried out by a tribunal or court order. Similar to this, if the company has engaged in any fraudulent or unlawful actions, it may be forced to wind up by any official person of the firm submitting a petition with a court or a tribunal.
Voluntarily dissolving: The Corporation needs a resolution from the directors in order to dispose off all of its assets or transfer its stock to another organization.
Any company looking to wind up its operations, dissolve its legal entity, or cease business activities needs to follow the proper closure process.
Closing a business properly provides several advantages for directors and shareholders.
The following documents are required to close a private limited company:
The closure process follows a defined sequence of steps to legally dissolve the company.
Call a board meeting to discuss and approve the proposal to close the company. Pass a board resolution authorizing the closure.
Obtain consent from 3/4th of the shareholders approving the closure of the company. File necessary resolutions and get them notarized.
Prepare all necessary documents including financial statements, indemnification bond, and bank account closure certificate.
File Form STK-2 (Strike off application) and Form GNL-2 with the Registrar of Companies. Submit all required documents and pay the applicable fees.
The Registrar of Companies reviews the application and, upon satisfaction, strikes off the company's name from the register. The company is officially dissolved.
We manage every step, document, and filing with the ROC so you can focus on your business transition.
We verify your eligibility and ensure all required documents are complete and valid.
Assistance in drafting board and shareholder resolutions for company closure.
Guidance on board meetings, shareholder consent, and compliance requirements.
Complete filing of Form STK-2 and GNL-2 with the Registrar of Companies.
We respond to any queries or clarifications raised by the ROC.
Regular follow-up with ROC to ensure timely processing of your application.
Help preparing and organizing all required documents for the closure.
Guidance on closing company bank accounts and obtaining closure certificates.
Ensuring the company's dissolution is reflected on the MCA portal.
Talk to a First Auditor specialist today — get a clear fee quote and document checklist before you start.
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