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Adhering to Legal Requisites for Company Shut Down

Running a business can be intricate, and there may come a time when a **Private Limited (Pvt. Ltd.)** company needs to be shut down due to reasons like a corporate sale, voluntary closure, or business failure.

Regardless of the cause, it is essential for the directors to adhere to the legal requisites and guidelines stipulated in the **Companies Act of 2013**. This entails following specific processes, fulfilling regulatory obligations, and conforming to legal formalities to ensure the proper closure of the Pvt. Ltd. company in compliance with the relevant laws and regulations.

Two Ways a Pvt Ltd Company Can Face Closure

Voluntary Closure

A Pvt. Ltd. corporation must go through a **protracted compliance filing process** in order to voluntarily close. This involves events such as the approval of a special resolution by a majority of shareholders or the conclusion of the period for which the business was founded.

Defunct Winding-Up (STK-2)

As per the Companies Act, 2013, if a company is declared as a **Dormant Company** (defunct), the government provides relief to wind up the company. This process requires the filing of the **STK-2 form** with the Registrar of Companies (ROC) for striking off the name.

Expert Assistance During Crisis

Sujata Associates is best known for handling complicated legal issues related to business like company closure. With our extensive experience of **20 years**, we provide the most efficient legal services at a reasonable cost. During the **Covid-19 pandemic**, we are providing online services for our valuable clients. **Pvt. Ltd. Company closure in Kolkata** is now just a click away from you.

Pvt. Ltd. Closure Consultation

Get assistance for voluntary winding-up or fast-track exit (STK-2).

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The Detailed Procedure of Voluntary Closure

  • A **Resolution** must be passed with at least **2/3 of the directors agreeing to it** (for Board Resolution, leading to shareholder special resolution).
  • The **Consent of the Trade Creditors** is essential to ensure they have agreed to the winding-up terms.
  • The **Declaration of Solvency** is then formally issued by the directors/company, confirming the company can pay its debts.
  • The appointed **liquidator** will then make a formal **application to the Tribunal** (NCLT) after completing all liquidation tasks.
  • A **final order** from the Tribunal/Authority must be filed with the **ROC** to officially strike off the company name.
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