Are you looking to close your company in India but don’t know where to start? Learn how to close a company in India, no matter what type of company you have.
Registering a company may be easy but closing a company in India comes with its own set of challenges. Closing a company can be very hard and painful sometimes. The process of closing a company in India tears down entrepreneurs financially and emotionally at their most vulnerable times, especially when they are bankrupt.
Process of Closing a Company in India!
Closing a company is a legal process for permanently shutting down your business. The process is long, tedious, and expensive, in most cases. Indian laws do not let go you so easily when it comes to closing a company. After various amendments in laws, things have changed now and there are a few quicker modes to close the company, but that depends on the company’s status. In general, closing a company requires certain mandatory filings with respective regulatory authorities. Many business owners do not know how to close a company in India.
Let’s understand how to close a company in India
Now, you will be wondering how can I close my company? Before knowing the procedure, you need to understand the type of your company. After that you will have to follow the process step by step according to your company type. There are many types of companies recognised under Indian Law namely Proprietorship Firm, Partnership Firm, Private Limited Company, Public Limited Company, One Person Company, Section 8 Company, and Limited Liability Partnership (LLP). A Private Limited company is the most preferred form of company in India. Company registration and Company windup services are provided by Monitory of Corporate of Affairs in India.
There are Seven Types of Companies registered in India. Which type of Company do you want to close?
- Proprietorship Firm
- Private Limited Company
- Public Limited Company
- Partnerships Company
- Limited Liability Partnership
- One Person Company
- Section 8 Company
Process of Closing a Proprietorship Firm in India
A proprietorship is considered one of the easiest types of company to start in India. There are no formal requirements for registering a proprietorship in India. The process of closing a proprietorship firm in India is simple and easy. if the proprietorship firm has obtained GST, VAT, Professional Tax, Shop & Establishment Act, Factories Act, and GST Registration, all of them must be surrendered.
If you have decided to permanently close your proprietorship firm, you can follow our step-by-step guide to close your firm easily. You can find it here.
Process of Closing a Public Limited Company in India
You can close your Public Limited Company in just 5 Steps by following the process. The process of Closing a Public Limited Company in India is a little sophisticated but not much difficult. A Public Limited Company may be closed voluntarily by its shareholders or compulsorily by the judiciary. A Public Limited Company requires a minimum of 3 Directors as a prerequisite. However, the majority of directors must agree for winding up the company.
A public limited company under the Companies Act 2013 is a limited liability company with publicly traded shares. Its shares can be purchased privately through an initial public offering (IPO) or trading on a stock exchange by anyone.
If you’re not running a business and not even filing compliance of your company, you may apply for a winding up public limited company to avoid being in default. If your company is a dummy company, a non-operative, or a defunct company, you may apply for company closure to avoid penalties.
The Process of closing a Public Limited Company is also known as Strike off, Winding Up, or Company Closure under the newly notified Companies (Removal of names of companies from the register) Amendment Rules 2022.
If your company is nonoperative and you decided to permanently close your Public Limited Company, you can follow our step-by-step guide to close your company easily. You can find it here.
Process of Closing a Partnerships Company in India
The Process of Closing a Partnerships Company in India
Process of Closing a Limited Liability Partnership in India
The Process of Closing a Limited Liability Partnership in India
Process of Closing a One Person Company in India
The Process of Closing a One Person Company in India
Process of Closing a Section 8 Company in India
The Process of Closing a Section 8 Company in India
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