A private limited company is an artificial judicial person and requires various compliances like appointment of Auditor, regular filing of income tax return, annual return filing and more. Failing to maintain compliance for a Company could result in fines and/or disqualification of the Directors from incorporating another Company. Therefore, if a private limited company has become inactive and there are no transactions in the company, then it is best to wind up the Company.
Voluntary winding up of a company can be initiated at anytime by the shareholders of the company. In case there are any secured or unsecured creditors or employees on-roll, the outstanding dues must be settled. Once all the dues are settled, the bank accounts of the company must be closed. Finally, the company must regularise any overdue compliance like income tax return or annual filing and surrender the GST registration. Once, all activities are stopped and the registrations are surrendered, the winding up application petition can be filed with the Ministry of Corporate Affairs.
Purminder Kaur & Associates can help you wind up your Company, quickly and easily. Purminder Kaur & Associates can help you initiate the winding up process within 10 to 14 business days. The entire process for winding up of a company can be completed within 3 to 6 months, subject to government processing times. The timeline for winding up of a company could also differ from case to case, based on unique circumstances. To discuss more about winding up a company, get in touch with an Purminder Kaur & Associates Advisor.
Reasons to Winding Up of a Company
Avoid Compliance
A company is a legal entity and a juristic person established created under the Companies Act. Therefore, a company is required to maintain regular compliance throughout its lifecycle. Winding up process can be to close a company that is not active and avoid compliance responsibilities.
Fast to Close
A company can also be closed by filing an application with the MCA in about 3 to 6 months. The entire process can be completed online. Hence, the process for closing a company is fast and easy in India through Purminder Kaur & Associates.
Low Cost
When compared to maintaining compliance for a dormant company, it might actually be cheaper to wind up a company and incorporate again when the time is right. Purminder Kaur & Associates can help you wind up a company.
Avoid Fines
A company that doesn’t file its compliance on time incurs fines and penalty including debarment of the Directors from starting another Company. Hence, it is better to officially wind up a company that is inactive and avoid potential fines or liabilities in the future.
Easy to Close
A company with minimal or no activities that has maintained proper compliance can be closed very easily in India. If any compliance is overdue, the compliance must first be regularised and registrations surrendered to close the company.
How we help with winding up of a company
Company Review
A Business Expert reviews the activities of the Company and determines if it is ready for winding up and advises on the formalities. The review process would be complete in 2 – 3 working days.
Document Preparation
The necessary documents are prepared by an Expert for winding up of the company along with all attachments for signature. Documents will be prepared by the Expert in 10 – 15 working days depending on the size of company.
Winding Up Application
Company winding up application along with the necessary documents are submitted to the MCA. MCA will usually approve the application for winding up and closing of the company in about 3 to 6 months, subject to processing time.