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Closure Of Company

It is very easy to start any company, as for registering a company the applicant only needs to submit the application form along with relevant documents and fees but to close a company certain requirements are there that are needed to be followed. Any company that wants to shut down itself cannot directly close it, there is a process for winding up which the company has to follow either the company is One Person Company or a Private Limited Company. No company can apply to strike off the company before completing its one year from the date of registration, one year should be completed by the company before its closure. And along with that, no business shall be commenced by the company for at least one year, then a company can be closed after one year of registration. The directors of the company need to file a form for winding up of the company along with the reason and approval from at least 75% of the shareholders of the company along with the required fees.

Whereas the second option is to get struck off by the registrar, if any company fails to file the annual compliance return to the ROC then the registrar will strike off the name of the company but this will cause penalty for the directors as the registrar will disqualify all the directors of the company for 5 years and during this period the directors cannot be appointed as a director in any company.