CLOSING YOUR PRIVATE LIMITED COMPANY
As the competition is also on its verge, it sometimes becomes difficult to run your business. After constantly failing in your field, you may think of changing your field. For that, you might have to close your private limited company. Before going for this, try other ways that might work for your business as many people are connected to your business and with you. Remember you are not the only one. But if none of the ways is working and you have to take this step. Go for it. This article introduces you to the procedure of closing your company whether it is newly opened or an old one.
Please note that it is not easy to close a company, you may sometimes have to work as much as you did while opening it. This a time-consuming procedure also as there are various legal issues associated with it. Although with time and right authority it is now easy to close a company still it is a tedious task and requires a lot of efforts. You also have to fill many formalities.
For closing your company, firstly recognize whether your company is dysfunctional or closure is because of something else.
A dysfunctional company is the one that has not done any activity since last year. In case of big loss to the company, you might have to shut down the company.
There are two ways to handle this task, either sell your company or wind it up.
Selling your company’s major shares might even work sometimes. As the shareholders change the responsibilities are taken up by different individuals who may take your company to a different level. The stock exchange is also similar to it.
Winding the company – for winding a private limited company –
- submit an application stating its closure by the owner of the company
- submit the necessary documents associated with it
- The application or petition will be printed in the newspaper
- Complete information about the company, shareholders and other things are necessary for winding up
- After submission of application and documents, your petition will be analyzed and will be granted the permission.
Your account statement is necessary. Also for closing your company easily and swiftly, you may not have any loan against your company. The loan has to be paid before winding it up. For loans, waiver letter is to be written in case you are not able to pay the loan.
The process of closure of a company has to be done as soon as possible.
- Within 30 working days – after the submission of your application for the closing of the company, within 1 month submit your account details and statement. A declaration also has to be done that no other assets instead that is mentioned in the form are there with the company.
- Within 25 working days – along with the declaration form, affidavit and other required documents must be submitted after the submission of the statement of the account.
- 2 months – it takes approximately 2 months to complete the whole procedure and get your company winded up.
This is a hefty process but with Qiklegal, all your legal matters become so easy. We will get the liquidator you are searching for this project. Consult us, we would love to serve you at the lowest possible price.