Closure Of Pvt Ltd Company

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Closure Private Limited Company

Closure private limited company in just 7 days

How Can a Private Limited Company Be Closed? A private firm can be shut down in one of four ways. The business may be discontinued or shut down at the owners' or directors' discretion. The company's directors swear under oath that they are in charge of the attempt to liquidate the business.

    Private limited company requests to be wound up or closed

    The company is unwilling to carry on with business as usual






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Advantages of Closure Up of Company

From debts and responsibility

Payments to investors or creditors

Low lost need for liquidation process

Withdrawing legal action from the company

Official liquidator

Protection for investors


Closure Private Limited Company

Documents needed to file the appeal
Identification proof

Identification proof

Proof of identity like PAN Card/Aadhar Card/Voter ID card.

Residence proof

Evidence of residence

Residence proof such asPassport/Driving License/Voter ID Card.

Bank Statement

Account statement

Bank account statement that has been properly certified by an accountant.



Affidavit in Form STK-4 and Indemnity bond in Form STK-3 duly notarised.



Director's Registered Digital Signature Certificate for executing the form.

Board resolution

Board resolution

Authenticated copy of the board resolution authorising the submission of this application.

Procedure For Liquidation

The process of selling the company's premises and assets in a summary liquidation.

Money transfer to creditors or investors

The liquidator is required to look into and examine any documentation provided by investors or creditors as proof of debt or loan. The list of creditors must also be provided to the Central Government by the liquidator 30 days prior to the deadline for claims. Following approval, the liquidator will release the creditors from any outstanding debts, loans, or payments.
Within 30 days following their appointment, an official liquidator must call a firm's investors or creditors to a meeting to discuss and substantiate any claims they may have against the business. After receiving the call from the official liquidator, claims must be submitted within 30 days in a specific manner.
Official Liquidator's Responsibilities

All of the company's property and assets must be taken under the official liquidator's control or custody, and all effects and actionable calls to which the business is entitled or seems to be entitled must be made by the liquidator. It includes all of the company's assets and all of its unpaid liabilities.
The official liquidator has the power to choose a representative or auctioneer to handle the sale of the company's assets and properties after gaining approval from the federal government.
Obligations and tasks assigned to the official liquidator

All corporate affairs must be examined and investigated by the Official Liquidator, who must then provide a thorough report to the Central Government in the prescribed manner.
The report must specifically note any instances of dishonesty or fraud in the establishment, advertising, administration, or promotion of the company. In the event that the liquidator's report identifies any fraud or deceit committed by the promoters, shareholders, directors, or any other official of a corporation, the Central Government may order a more extensive investigation into the matters and affairs of the company.
Order of Closure

After conducting a thorough investigation and the Official Liquidator provides a report on all verification processes, the Central Government may order to begin the Closure-up process in the same manner that a company or organization is wound up by the tribunal.

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Frequently Asked Questions

According to (R. 34), CL may submit an application for list rectification following settlement.

Document required for closing a business:

Resolution from the board of directors authorizing the closing of the business.

Indemnity Bond from all the Directors of the company. An affidavit from all the directors of the company.

Financial Statements with NIL Liabilities.

First, the shareholders must pass a resolution to wind up the company. This resolution must be filed with the Registrar of Companies (ROC). Once the ROC approves the resolution, the company must give public notice of its intention to close.

How to Close Private Company in India? A Company closure is filed under Form STK 2 (Earlier form was FTE) along with the government fees of Rs. 5000/- and some necessary docs. However it is important to note the cases where closure can be filed.

A single director CANNOT close /dissolve the company. HOWEVER, IF there are misappropriations, malfunctions and non-compliance of the statutory laws, THEN proper proceedings have to be filed before the ROC, for initiating dissolving /closure of company.

The company will stop doing business and employing people. The company will not exist once it's been removed ('struck off') from the companies register at Companies House. When you liquidate a company, its assets are used to pay off its debts. Any money left goes to shareholders.

The form WIN 4 is required.

Information must be more than 30 days old when a petition is filed.

Verification must be made by an affidavit on form WIN 5.

Unless he gives up his security, a secured creditor must disclose the specifics of his security.

will only be able to cast a ballot about any remaining sum that is owed to him after deducting the value of his security.

A meeting of the creditors and members must be called by CL.

The tribunal has the authority to order that a vacancy not be filled.

Despite a vacancy, the committee may continue as long as it has at least two members.

A copy of the petition must be provided to every contributor.

24 hours after the request was made.