Closure of OPC/ Pvt Limited Company

Closure Of OPC/ Private Limited Company

Shutting down a company is a challenging process. However, if you are the owner of an incorporated business in the form of a Private Limited Company, then it is even more so. A Pvt. Ltd. Co. can be shut down in several manners depending upon the requirements of the business owner –

Sell the company (if possible);
Declare the company ‘defunct’ and shut it down; or
‘Wind up’ and dissolve the company

Defunct Company

Any defunct company who wants to strike off its name from the Registrar of Company can apply via Form FTE (Fast Track Exit) for strike off of its name from the register maintained by ROC. A private limited company may be declared defunct and shut down by petitioning with Registrar of Companies.

The FTE mode is not applicable to the following

listed companies and companies that have been de-listed due to non compliance of Listing Agreement or any other statutory Laws,
companies registered under section 25 of the CA, 1956;
vanishing companies;
companies which are subject to investigation or inspection;
companies against which prosecutions are pending in the court;
companies which have accepted public deposits which are either outstanding or the company is in default in repayment of the same;
company having secured loan ;
company having management dispute;
company in respect of which filing of documents have been stayed by any competent authority;

10. company having dues towards taxes or banks and financial institutions or any other authority.

There are other methods also which can bring your business to an end but the time taken can be little more than the FTE Mode.

As per section 270 of the Companies Act 2013, winding up of a company may be either –

(a) By the Tribunal (also known as compulsory winding up); or

(b) Voluntary winding up

Voluntary winding up may be further by

Member’s Voluntary winding up.
Creditor’s Voluntary winding up.

Whereas Compulsory winding up may be, in addition to the aforementioned –

Any contributor or contributors
By the central or state govt.
By the registrar of any person authorized by central govt. for that purpose.

A Simple Process Towards New Beginning

What you do

You just need to fill our simple form stating the basic details of directors in your company and also few documents asked by our experts.

What We do

We prepare all the necessary documents and file with ROC for the closure of your business

What you get

Once the request for closure is accepted by the ROC it will strike the name of the company and declare it as defunct, you will receive all the documents including Certificate issued by the ROC confirming closure of the business.

Frequently Asked Questions

What Is Fast Track Exit (Fte) Scheme?

FTE is a company closure scheme initiated by MCA for easy and faster closure of a Company.

Can The Company Be Restored After Closure Of Business Through Fte Mode?

Yes, A company dissolved under FTE can be restored on the Register by a Court order within 20 years of it being striked off.

What Is The Difference Between Closures, Winding Up, Dissolution Of Company?

Closure of the Company is done voluntarily and is done through the fast track exit scheme.
Winding up of the company may be voluntary or by the order of the Court by appointing an official liquidator to monitor the process of winding up.
Dissolution is initiated by the Court for ending the legal existence of the Company.

Is There Any Condition For Closing Of Company?

Yes, there should be no business activity for one year

Can Any Company Go For Closure Of Business Through Fte Mode?

No, there are list of companies which cannot close their business through FTE Mode, the list is already mentioned above.