STRIKING OFF THE COMPANY


Companies looking to close  permanently

COMPANY CLOSURE

Professional Fees flat 7,999/-


    STEPS TO CLOSE A PRIVATE LIMITED COMPANY

    Step 1
    Checking the current status of the Company
    Step 2
    Updating the Annual Compliances if business carried out.
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    Step 3
    Preparing Affidavits and Indemnity Bonds
    Step 4
    Filing of the STK-2 Form with the ROC
    Step 5
    Getting the official order for removal of name from the ROC
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    LIST OF DOCUMENTS REQUIRED FOR CLOSURE

    Identity Proofs of Directors

    PAN, Aadhar/Passport, Photograph

    Documents of Company

    Incorporation Documents (COI, MOA and AOA)
    Previous Year's Reports and Annual Returns ( if any)
    Bank Statements till date

    Indemnity Bonds/Affidavits

    Formats will be prepared by the team


    Why Close a Private Limited Company?

    Huge maintenance Costs and Penalties

    Private limited company comes with its limitations. A private limited company has to mandatory file Annual ROC Returns ( AOC-4 and MGT-7) even if there are not doing any business. Delay in these forms range penalties around Rs 200 per day which ends up becoming a huge liability.

    Higher Income Tax Rate

    One recommends to start business with a proprietorship instead of Private Limited Company due to higher income tax rates. The corporate tax rate comes around 25% whereas the individual income tax rate comes to around 10-15% due to slab benefit. Moreover, managing proprietorship will cost a lot less compare to a company

    Director Disqualification Scenario

    The directors of a company can get disqualified for 5 years from being a director if the company doesn't file it's annual returns for 3 consecutive years. Closing a company permanently will prevent the defaults


    FREQUENTLY ASKED QUESTIONS

    Yes. A company can be closed by the STK-2 form even if it's returns are pending provided the company has not done any business transactions whatsoever in those years. This way, it can skip the annual filing and go for closure directly.

    It takes around 6-12 months to get the official closure order from ROCs. It varies states to states and depends upon the pending applications before the Registrar.

    The company doesn't have to file its annual returns anymore once the order is received. However, the director have to file DIR-3 KYC form every year inorder to maintain their DIN No.

    Yes. The government fees of the STK-2 form is Rs 10000. Moreover there are some indemnity bonds and affidavits to be prepared for closure which will cost some more government fees.

    If a private limited company doesn't file its Annual ROC Returns ( AOC-4 and MGT-7) for 3 consecutive years, the ROC may strike off the company permanently from its registers. But this will also result in disqualification of Directors u/s 164(2) for 5 years.