Close Your Private Limited Company
The process of dissolving a company is called Winding up. For this, you need to submit an account statement and all the directors should execute an affidavit and indemnity.
Description
How to wind up a company?
The winding-up of a company involves a shutdown of all business operations, transactions and selling off all company’s assets to other individuals or entities, to clear off company debts.
Once the debts have been cleared off, the remaining assets of the company will be shared among shareholders concerning the capital invested by them
The winding-up of the company can be executed in two different ways
Compulsory winding up: The compulsory winding up of a company can be executed by the order of a tribunal or a court, bypassing a special resolution made by the directors during the company’s board meeting, which proposes a court intervention. Identically, by filing a petition to a court or a tribunal by any official person of the company, if the company has indulged in any fraudulent/unlawful activities, it can be winded up compulsorily.
Voluntarily winding up: The company requires a resolution from the directors, to sell off all assets of the company or to transfer the stakes to another entity.
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