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CLOSE YOUR ENTITY

  • Counselling and guiding on closure

    Pre-closure activities and compliances

  • Legal and Secretarial Services

    Appearances and Hearings

  • Liaison Services

Frequently Asked Questions

  • 1) What is closure of company / LLP?

    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.

  • 2) Can I close my company at any point of time?

    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.

  • 3) I have been residing in USA since last few months and I have a company in India, now I wish to close the company. Is it possible to close the company?

    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.

  • 4) My company had revenue and expenses till the last month but now I feel that due to some regulatory amendment the business shall not be able to generate revenue anymore and I would like to close my company. Is it possible to do so?

    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.

  • 5) My company has been incorporated before five years, however, we never commenced any business and the company remained idle for this long. Can I apply 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.

  • 6) Is dormant status of a company same as closure?

    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.

  • 7) What are the points I should consider before applying for closure?

    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.
  • 8) I have a company which is in operations but as I was out of India for some time and I could not comply with the Directors’ KYC and did not file DIR-3 KYC. Can I still apply for closure?

    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.

  • 9) I started a company two years back with one of my friend as another Director cum Shareholder and now we are not in talking terms. Can I go ahead in closing the company?

    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.

  • 10) How long does it take to close a company?

    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.