Wazzeer Services Archive - Page 16 of 23

We registered a company but we never started the business. Do we still need to complete all the filings before we file for closure?

Before striking off the company you need to complete all the pending compliances, after completing all the compliances only you can file for a closure.

Since our company is no longer in active business, I have lost touch with the other directors and shareholders can I go ahead and close the company without their signatures?

No, even if you are one of the directors or shareholders you still need the approval of other directors and shareholders before closing a company. Only after passing a board resolution it is possible to close a company.

Right now I do not want to continue with my company but would want to restart in a couple of years should I close and restart or do I have any other option?

There is an option called dormant company, which provides an option of holding an asset/intellectual property without having significant accounting transactions. You just have file for an annual accounting and compliance. And you can reactivate the company once you feel like you can start the business.

We are no longer in active business. I do not wish to spend on closing the company. Can I leave it without filing for closure?

If you don’t close your company then you have to do the monthly and annual filings for your company and If a company doesn’t do any filings for 2 years the company will be struck off by the ministry, the directors will be disqualified, in order to restore the DIN, they will have to apply with the national company law tribunal.

Can I close a company with debts?

Only the companies that are declared insolvent can close with outstanding debt not otherwise.

How to close a company?

A company can be closed in the following ways: Strike off a company under Section 560: Winding up Voluntary winding up Overview of winding up

How to close a company through winding up?

Section 425, of Companies Act, 1956, deals with modes of winding up.The winding up of a company may be either:(a) By the Tribunal (also known as compulsory winding up)(b) Voluntary winding up(c) subject to the supervision of the Court

What are the documents required for company closure?

Document required for closing a business: All Income tax returns filed with ROC. Resolution from the board of directors authorizing the closing of the business. Indemnity Bond from all the Directors of the company. An affidavit from all the directors of the company. Financial Statements with NIL Liabilities.