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Closing a company in India is not just about stopping business operations—it’s a legal procedure that requires proper documentation, government approvals, and compliance with company laws and regulations. Whether you have a Private Limited Company, LLP (Limited Liability Partnership), or a One Person Company, the process of shutting it down officially is known as Company Closure or Company Strike Off.
Sometimes, businesses stop functioning due to financial losses, inactivity, lack of time, or other personal reasons. But just leaving it without closure can bring legal complications, penalties, and compliance issues in the future. That’s why it becomes very important to officially close the company through proper legal channels under the Companies Act, 2013.
By choosing CallmyCA, you can make this entire process simple and stress-free. Our experts will handle everything from filing the required documents to communicating with the Registrar of Companies (RoC), ensuring that your company is struck off properly and permanently.
It is important to understand that if a company is not operating for more than two years and has no liabilities, it is eligible for a fast-track exit under Section 248 of the Companies Act. Even companies that never started operations after incorporation can apply for closure.
To close your company, a few documents are required, such as a PAN card, an incorporation certificate, the latest bank statements, and an affidavit or indemnity bond by directors. But don't worry—our team will guide you on every document required based on your company type.
If a non-functioning company is not closed legally, it may attract government penalties and late filing fees. Closure prevents these unnecessary financial liabilities.
Filing annual returns, income tax returns, and maintaining books are mandatory, even for inactive companies. Closure helps you escape from these compliance duties.
You can stop worrying about notices from the Income Tax department, RoC, or other authorities. Official closure gives you mental peace and legal clarity.
If a company fails to comply with ROC filings, directors can get disqualified. Closing the company in time helps protect your directorship.
It helps clean up your financial profile by removing non-operational companies from your records, which is useful when you plan to start a new business.
Why spend time, money, and energy on maintaining an unused company when you can close it and focus on your next venture?
An inactive company with pending compliances affects your credit profile. Closure improves your financial credibility.
Authorities can take legal action against non-compliant companies. Closing it protects you from such complications.
After closing the company cleanly, you can easily start a new one without any baggage of past non-compliance.
To close a company means to legally end its existence by removing its name from the Registrar of Companies (RoC). This is done when the company is no longer active or doesn’t plan to carry out any business. It ensures that there are no legal obligations or compliance requirements pending in the future.
No. Even if you stop operations, the company remains legally active unless you apply for closure. You will still be required to file annual returns and pay penalties for non-compliance. Hence, it is always better to legally close the company through the proper procedure.
Winding up is a long legal process used mainly for companies with assets and liabilities. Strike-off is a quicker method applicable to inactive companies with no liabilities. For most small and non-operational businesses, strike-off is the best route to close the company.
Generally, it takes 3 to 6 months to close a company through strike-off, depending on the document preparation, approvals from the directors, and the processing time of the Registrar of Companies (RoC). CallmyCA helps you speed up this process by ensuring every step is completed properly.
No, a company with outstanding liabilities cannot be closed under the fast-track strike-off route. All dues must be cleared, and a no-dues affidavit must be submitted by the directors before applying for closure.
Yes, even if there was no income, the final ITR must be filed, and the proof should be submitted with the closure application. This ensures that there are no pending tax liabilities at the time of strike-off.
While not mandatory by law, it is highly recommended to take help from a CA or Company Secretary, as the process involves legal documents and ROC filings. CallmyCA provides expert support to make this hassle-free for you.
Before applying for closure, all company assets must be sold, and proceeds should be distributed or settled. The company should not own any movable or immovable assets at the time of strike-off.
Yes, if the company has been inactive for two or more years, it qualifies as a dormant company and can be closed using the fast-track exit process under Section 248 of the Companies Act.
If the company is not closed and doesn’t file mandatory returns, it may face penalties, director disqualification, and legal action from the RoC or other authorities. Therefore, it is better to legally shut it down than to leave it idle.
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