Often, we register a company for a business idea we wanted to implement and for some reasons it does not work, we do not even start the work. Also, there are times when we register a company for a future project and hence those companies are not operational in present.
There are various compliances which one needs to meet after registering a company and it takes a cost to meet them. Who would want to bear more cost for the company which is not working in the first place?
So, what do we do, we just keep the company like that, either we get the compliances done or many times we just ignore it.
Earlier, closing a company was a tedious process, which required a lot of formalities, things have changed now and there are now quicker modes to close the company.
Here we bring you process for such companies that you have formed but not functional anymore to Close Private Limited Company
This mode as suggested by name lets you close your company quickly, any company which is defunct can apply for this mode.
Let’s understand what’s a defunct company
A Defunct company is a company which has:
1. Nil asset and nil liability, and
2. Not commenced any business or activity since its incorporation
1. To close a company under FTE, one should apply through Form STK-2, available in MCA website. This form should be digitally signed by authorised director.
The application fee will be Rs. 10,000/-
2. On receiving the application, the Registrar would display the name of the company on its website for a period of 30 days, to give notice to anyone who may have objection to the striking off the name of the company.
3. After 30 days, the Registrar will issue a certificate for closure of the company stating that its name is struck off from the register of companies maintained with the ROC.
The documents stated below are to be attached with the Form STK-2 to Close Private Limited Company
i) We need a Board of Directors approval to Close Private Limited Company
Through a board resolution, BOD must approve applying for the FTE to Close Private Limited Company
Note: All bank accounts, Registrations with the govt. authorities should be closed/ cancelled before applying to Close Private Limited Company.
ii) Once board resolution is passed, all the directors of the company should produce an affidavit on a stamp paper or Rs 100/- duly notarized & individually stating the following in it:
iii) Next, all the directors of the company should execute an Indemnity Bond witnessed by 2 persons on a stamp paper of Rs 200/- and undertake to do the following: