Closure of company / LLP means to apply before the Ministry of Corporate Affairs for removing the name of the entity from the register under the Registrar of Companies which upon successful satisfaction may be granted by the Ministry.

Yes, you can close a company at any point of time subject to fulfilment of certain conditions as specified by the Ministry of Corporate Affairs. The company should not be in operations for atleast two preceding years and there are no litigation pending against the company or the Directors and also there should not be any dues pending.

Yes, it possible to apply for closure of the company subject to fulfilment of necessary conditions. However, certain declarations are required to be given the Directors of the Company which should be stamped and notarized and this shall be possible when you are back to India.

No, a company to apply for closure has to remain inoperative for atleast two preceding years. Thus, in this case, you cannot apply for closure. Further, the company should comply with the necessary laws and requirement before applying for closure.

A company which was incorporated before five years and has remained idle can apply for closure, however, the company should have complied with the Annual Filings till last financial year and the Directors associated with the Company should not have been disqualified by the Ministry of Corporate Affairs.

No, Dormancy is different from Closure. In Dormancy, a company needs to file an annual return of dormancy every year after the Ministry has approved the dormant status, however, a company which has been closed need not comply with any other laws or regulations.

The following points should be kept in mind before applying for closure:

• Company should not be under any investigation / inspection
• There should be no pending prosecution in the court of law
• Company should not have any outstanding deposit, or other dues towards any financial institution / banks / Govt. bodies
• The directors should not have been disqualified by the Ministry of Corporate Affairs
• There should not be any stay order on the company where filings of documents have been barred by the judicial / quasi-judicial bodies.
• The company should have closed the bank accounts and should have procured a bank account closure certificate from the bank in their letterhead.

No, a Company except an OPC must have at least two Directors at any point of time. In any case, where the company has two Directors and one of them has not filed DIR-3 KYC shall be a disqualified director and the company under such circumstances shall not be treated as a valid company and hence shall not be able to apply for closure unless the necessary actions are being taken.

To apply for closure of a company, both the Directors shall give affidavit and indemnity bonds which shall be stamped and notarized. Further, the company should have passed Board Resolution approving the closure. So, if the necessary conditions are met, then the closure may be applied.

Once the form is filed for closure, Ministry of Corporate Affairs shall scrutinize the form and subject to satisfaction, the closure shall be approved which usually takes around six to eight months.