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CLOSE PRIVATE LIMITED COMPANY
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What is Closure of a Private Limited Company?

Closing a Private Limited Company means officially winding up its operations and removing its name from the records of the Ministry of Corporate Affairs (MCA). A company may be closed voluntarily by its shareholders or compulsorily by MCA due to continuous non-compliance or inactivity. Closure releases directors and shareholders from ongoing compliance obligations, annual filings, and legal liabilities of the company.

When Can a Private Limited Company be Closed?

Inactive Company

If the company has not commenced business or has been inactive for over 2 years.

Voluntary Closure

Shareholders decide to wind up the company voluntarily.

Compulsory Strike-off

When MCA orders strike-off due to non-compliance or violations.

Non-Profitable Business

If running the company is no longer financially or strategically viable.

Documents Required

PAN Card of Directors
Aadhar Card of Directors
Digital Signature Certificate (DSC) of Directors
Board Resolution for Closure
Consent Affidavit & Indemnity Bond
Statement of Accounts (NIL assets/liabilities)
Latest Income Tax Return (if applicable)
Closure of Bank Account Certificate

Benefits of Closing a Private Limited Company

Relief from Compliance

No need to file annual returns, audits, or ROC compliances once closed.

Cost Saving

Save money on maintaining a company that is not running.

Legal Protection

Directors and shareholders are protected from future penalties or liabilities.

Hassle-free Exit

Clean exit and freedom to start new ventures without pending obligations.

Compliance for Closure

Filing of Form STK-2 with MCA
Consent Affidavit & Indemnity Bond from Directors
Board & Shareholder Resolution for Closure
Statement of Accounts showing NIL assets/liabilities
Closure of Company Bank Accounts
Final approval from Registrar of Companies (ROC)

Steps for Closing

1

Board & Shareholder Resolution

Directors and shareholders pass a resolution to close the company.

2

Prepare Closure Documents

Affidavit, indemnity bond, financial statement, and resolutions prepared.

3

File Form STK-2

Submit strike-off application with Registrar of Companies (ROC).

4

ROC Verification

ROC verifies the application and supporting documents.

5

Closure Approval

Upon approval, the company’s name is struck off from MCA records.

Conclusion

Closing a Private Limited Company is the right step when business operations have ceased, or compliance costs outweigh benefits. It prevents legal issues, saves money, and ensures directors and shareholders have a clear exit. With Ramdoottax, the closure process is smooth, transparent, and fully compliant with MCA regulations.

About Us

Welcome to Ramdoottax, your trusted partner in company registration, compliance, tax filing, and trademark services.

We provide professional, reliable, and affordable business solutions to help entrepreneurs and companies grow without worrying about complex legal and financial processes.

Our mission is to simplify business compliance with transparency and efficiency.

Ramdoottax Company

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Frequently Asked Questions

When can a Private Limited Company apply for closure?
A company can apply for closure if it has not commenced business within one year of incorporation, or if it has remained inactive for two consecutive financial years without filing for dormant status.
Can a company with outstanding liabilities be closed?
No, all debts, taxes, and statutory dues must be cleared before filing for closure. If creditors exist, their approval is mandatory for the winding-up process.
What is the procedure for closure of a Private Limited Company?
The directors need to file an application with the Ministry of Corporate Affairs (MCA) using Form STK-2, along with consent from shareholders, affidavit, indemnity bond, and required approvals.
What happens if a company is not officially closed?
If the company is not closed officially, it continues to be listed as active in MCA records, and directors may face penalties for non-filing of annual returns and compliance, even if no business is done.
How long does it take to close a Private Limited Company?
Generally, the strike-off process takes around 3 to 6 months depending on document accuracy, pending compliances, and MCA approval timelines.

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