🛑 Cancellation / Closure of a Private Limited Company
A Private Limited Company can be closed or cancelled if it is no longer in operation or the shareholders/directors no longer wish to continue the business. The process of closing a company is known as strike off or winding up under the Companies Act, 2013.
🔁 Methods of Closure
- Strike Off under Section 248 of the Companies Act, 2013
Fast-track exit for companies that:
- Have not commenced business since incorporation, or
- Are not carrying on any business for the last two consecutive years and have not filed for “active” status.
✅ Voluntary by the company or
🚫 By Registrar of Companies (ROC) due to non-compliance
- Voluntary Winding Up
Used when the company has assets, liabilities, or ongoing business which needs proper liquidation and settlement.
✅ Eligibility for Strike Off
- No business activity for last 2 financial years
- No liabilities or legal disputes
- No ongoing investigation or pending litigation
- Company must be updated with all ROC filings
📄 Required Documents for Strike Off
- Board Resolution for closure
- Shareholders’ Special Resolution (signed by 75% shareholders)
- Indemnity Bond (Form STK-3)
- Affidavit from Directors (Form STK-4)
- Statement of Accounts certified by a CA (not older than 30 days)
- PAN card of company
- Copy of Board Resolution & Special Resolution
- Form STK-2 (Application for Strike Off with ₹10,000 ROC fee)
🕒 Time Required
- Typically takes 3 to 6 months, depending on document accuracy and ROC processing.
⚠️ Consequences of Not Closing a Dormant Company
- Annual compliance penalties (₹1,00,000 or more)
- Directors may be disqualified under Section 164
- Legal proceedings and ROC prosecution
- Difficulty in starting a new business
✅ GST Suvidha Centre Services for Company Closure
We offer expert assistance in:
- Evaluating your company’s eligibility
- Preparing all necessary resolutions and affidavits
- Filing STK-2 with ROC
- Coordinating with Chartered Accountants and legal advisors
📞 Close your private limited company the right way. Contact GST Suvidha Centre today!
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