Closing of Private limited can be done by below steps/ process.
Removal of names of companies from the Registrar of Companies
MCA has notified sections 248-252 w.e.f 26.12.2016 and also issued new rules for striking off names of companies referred as Companies (Removal of Names of Companies from the Registrar Of Companies) Rules, 2016 w.e.f 27.12.2016.
Striking off name of the company:
1. ROC can suo-motto issue notices to companies for strike off –reason [Section 248(1) and Rule 3]
2. Companies can also file application for striking off [Section 248(2) and Rule 4]
Grounds for Strike off of Company, if Company:
1. Has failed to commence its business within one year of its incorporation or;
2. is not carrying on any business or operation for a period of two immediately preceding financial years and has not made any application within such period for obtaining the status of a dormant company.
Exceptions [Rule 3(1) & Section 249]:
Following companies can not apply:
(i) listed companies;
(ii) delisted companies;
(iii) vanishing companies;*
(iv) Companies where investigation, inspection and prosecution is pending or carried out;
(v) companies to whom notices are issued under section 206 or 207 or 208.
(vi) companies whose application for compounding is pending
(viii) companies having public deposits either outstanding or in default
(ix) companies having charges pending for satisfaction;
(x) Section 8 or 25 companies.
(xi) Companies which has made application for strike off at any time and has not applied for following in the previous three months-[Section 249]
(a) Change of name or shifting of registered office from one State to another;
(b) Disposal for value of property or rights held by it, immediately before cesser of trade or otherwise carrying on of business, for the purpose of disposal for gain in the normal course of trading or otherwise carrying on of business
(c) has engaged in any other activity except the one which is necessary or expedient for the purpose of making an application under that section, or deciding whether to do so or concluding the affairs of the company, or complying with any statutory requirement
(d) Application in process for compromise or arrangement to the Tribunal
(e) in the process of winding up
* “Vanishing company” means
Application is made by company in Form STK-2 to ROC.
Companies to place the same on website of the company till the disposal of the application.
Documents required for application for removal of company [Rule 4(3)]:
Application or Forms pending for Strike off under Companies Act, 1956 [Rule 10 ]
Any application or proceeding pending for striking off or Form-FTE filed not disposed of by such authority for want of any information or document shall, on its submission, to the satisfaction of the authority, be disposed of in accordance with the rules made under the Companies Act, 1956.
Effects of a company notified as dissolved (Section 250).
This section implies that where a company is dissolved under section 248, it shall cease to operate as a Company and the Certificate of Incorporation (COI) shall be deemed to have been cancelled from such date except for the purpose of realizing the amount due to the company and for the payment or discharge of the liabilities of the company.
Penalties for Fraudulent Application for removal of name. (Section 251)
The person in charge of the management of the company shall-
The registrar may also recommend prosecution against the persons responsible for the filing of such applications.
Appeal to Tribunal (Section 252)
Restoration of Name:
Parties can apply for Restoration of Name by making an application to the Tribunal within the following time frame:
|1||Any Person aggrieved||Within 3 years from the date of the order of the Registrar.|
|2||Registrar on the basis of belief that the name has been struck off on the basis of incorrect information|
|3||Company/member/creditor||before expiry of Twenty years from the publication in the official gazette of the notice|
“For further information, please do not hesitate to contact me”
Suraj Bhardwaj, CS, LLB, B.com, +91- 9999004014- you can also whats app your query