Close Private Limited Company

Close Private Limited Company in India

Hassle-Free Closure of Your Private Limited Company with Expert Support

Closing a private limited company in India requires compliance with the Companies Act, 2013, ROC regulations, and legal formalities. Tax Pal Solutions ensures a smooth, legally compliant process to dissolve inactive or unviable companies while minimizing risks for directors.

Why Choose Our Services?

• Seamless strike-off and voluntary winding-up services
• Complete ROC filing and legal documentation support
• Avoid penalties, director disqualification, and legal complications
• Fast, transparent closure under Companies Act, 2013
• Trusted by over 1,000 businesses across India

Ratings

Overview of Company Closure

Closing a private limited company is a formal process necessary to avoid future liabilities, penalties, and compliance burdens. Companies can be dissolved through:

• Strike-Off (Fast Track Exit for dormant companies)
• Voluntary Winding-Up (For solvent companies)
• Compulsory Winding-Up (For illegal or fraudulent activities)

When Should You Consider Closing Your Company?

• Persistent losses or high debt
• Insolvency or inability to pay dues
• Outdated business model or unviable operations
• Strategic business restructuring or pursuing new ventures
• Stakeholder conflicts or succession issues
• Non-compliance or prolonged inactivity

Alternatives: Selling Your Company

Instead of closure, transferring ownership through a share sale or asset sale can allow continuity under new management.

Methods to Close a Private Limited Company

Step-by-Step Process

1. Strike-Off (Fast Track Exit)

1. Board Meeting – Pass a resolution authorizing strike-off.
2. Settle Liabilities & Close Bank Accounts – Clear dues and collect closure confirmation.
3. Shareholder Approval – Special resolution (75% approval) or written consent.
4. File Form STK-2 – Attach affidavit, indemnity bond, CA-certified accounts, ITR, and identity proofs.
5. ROC Scrutiny & Public Notice – 30-day window for objections.
6. Final Strike-Off Order – Company removed from ROC register after all objections are cleared.

2. Voluntary Winding-Up

• Pass a special resolution (≥75% shareholder approval).
• Obtain creditor consent.
• Submit Declaration of Solvency.
• Liquidator prepares and submits winding-up report.
• Tribunal approves dissolution; file final accounts with ROC.

3. Compulsory Winding-Up

• Petition filed by company, creditors, shareholders, or government.
• Tribunal reviews petition and may request company’s statement of affairs.
• Liquidator appointed to manage assets and liabilities.
• Liquidator submits reports to Tribunal and ROC.
• ROC issues official dissolution notice in the Gazette.

Eligibility for Closure

You can close your company if:

• Company is inactive or never started business
• Share capital not fully paid
• No outstanding bills, taxes, or loans
• No ongoing legal disputes
• All statutory returns filed
• Directors and 75% shareholders agree to closure

Documents Required

Common Documents

• Certificate of Incorporation, MOA, AOA
• Latest audited financial statements and P&L account
• Director and shareholder ID & address proofs
• Bank account closure confirmation

Strike-Off Specific

• Board & shareholder resolutions
• Affidavit & indemnity bond
• Statement of Affairs certified by CA
• Digital Signature Certificates (DSC)

Voluntary Winding-Up Specific

• Special resolution & Declaration of Solvency
• Public notice advertisements
• Liquidator appointment documents
• Final accounts & reports

Costs

Timelines

Risks of Not Closing Properly

• Continued legal liability for directors
• Penalties for non-compliance
• Risk of personal liability for company debts
• Difficulty starting new ventures or reusing company name
• Negative perception among investors, suppliers, and clients