WHAT IS CLOSING OF A COMPANY


 A Company or firm that conducts real estate closings, also called settlements. A company or firm that conducts real estate closings, also called settlements.The closing company does not represent     any party to the transaction, but merely ensures that all documents are properly signed and all monies collected and disbursed according to the parties' contract.

 

PROCEDURE FOR CLOSING A COMPANY


Board Meeting –  Two Directors   of the company must sign a resolution that resolves to apply to the ROC for the declaration of the Private Ltd Company as defunct.

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Affidavit  –  Two directors   of the company must then submit a notarized affidavit which has also been signed by the 2 Directors verifying that the company did business for a period up to date, and has since then discontinued its operations, and has no assets or liabilities.

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Indemnity Bond  – A notarized indemnity bond, duly signed by two directors, which states that in the case of any liabilities on the company, such liabilities will be met fully by the applicants, even after the name of the company is struck off the register of companies must be submitted.

 

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Accounting Information  – The financial statement of the company for the most recent year, prepared up to a period which ended one month before the date of application, must be filed by the company. The statement of accounts submitted must provide a true and fair view of the company’s financial position, and to verify the same, a declaration stating this shall be submitted by a practicing Chartered Accountant.

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Board Meeting –  Two Directors   of the company must sign a resolution that resolves to apply to the ROC for the declaration of the Private Ltd Company as defunct.

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Financial Statement  – At least one year from the date of incorporation must have passed before the company petitions the ROC for declaring it as defunct. Audited financial statements for the period in which business has been undertaken must be submitted along with the application. In case any unsecured loans are there, then a waiver letter for the same must be submitted.

 

Closing of Company

Rs. 0 all-inclusive


Frequently Asked Questions (FAQ's)?

When existence of the company as a legal entity comes to an end it is known as the closure of the Company.

Closure of the company is done voluntarily and is done through the fast track exit scheme.

Winding up of the company may be voluntary or by the order of the court by appointing an official liquidator to monitor the process of winding up.

Dissolution is initiated by the court for ending the legal existence of the company.

It is necessary to file closure with the ROC as ROC or MCA data base need to be updated and the company is free from all its legal compliances as it is officially closed. Even though business of the company is closed, unless closure documents are filed and approved by the ROC, company is not legally closed and the company needs to file all the regular returns.

FTE is a company closure scheme initiated by MCA for easy and faster closure of Company.

 

Any company which is not a Section 8 company and has been inoperative for more than 1 year from the date of its incorporation can apply for closure of company under FTE scheme.

Application for striking off of the company, Board Resolution for Closure, Consent of Directors, Directors Affidavit, Indemnity Bond, Statement of Assets and Liabilities

The form has to filled be filed with ROC office within 30 days from the date of signing of the statement of assets and liabilities.