{"id":54296,"date":"2023-04-03T12:14:25","date_gmt":"2023-04-03T06:44:25","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=54296"},"modified":"2023-04-03T12:15:51","modified_gmt":"2023-04-03T06:45:51","slug":"understanding-the-process-of-winding-up-a-company-in-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/understanding-the-process-of-winding-up-a-company-in-india\/","title":{"rendered":"Understanding the Process of Winding up A Company in India"},"content":{"rendered":"\n<p>The process of liquidating a company is often known as winding up a company; therefore, both terms go hand in hand. Through the process of winding up, the existence of a company comes to an end. Even during the process of winding up, the company performs its day to day activities. The only purpose for winding up a company is to liquidate its assets, and this means selling of all the assets the company owns so that they can be used to pay off its debts and afterwards distribute the remaining amount in between all the members as per their shareholding in the company.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/understanding-the-process-of-winding-up-a-company-in-india\/#Some_Important_Sections_Related_to_the_Winding_up_A_Company\" >Some Important\nSections Related to the Winding up A Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/understanding-the-process-of-winding-up-a-company-in-india\/#What_Are_The_Different_Ways_To_Close_A_Company\" >What Are The\nDifferent Ways To Close A Company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/understanding-the-process-of-winding-up-a-company-in-india\/#What_Is_Compulsory_Winding_Up_Of_Company\" >What Is Compulsory Winding Up Of Company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/understanding-the-process-of-winding-up-a-company-in-india\/#Cases_Where_a_Tribunal_Can_Order_To_Wind_Up\" >Cases Where a Tribunal Can Order To Wind Up<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/understanding-the-process-of-winding-up-a-company-in-india\/#Who_All_Can_File_The_Petition_For_Winding_Up_By_Tribunal\" >Who All Can\nFile The Petition For Winding Up By Tribunal?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/understanding-the-process-of-winding-up-a-company-in-india\/#Stages_Involved_In_The_Process_Of_Winding_up_A_Company_by_Tribunal\" >Stages Involved\nIn The Process Of Winding up A Company by Tribunal<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/understanding-the-process-of-winding-up-a-company-in-india\/#What_Is_Voluntary_Winding_Up_A_Company\" >What Is Voluntary Winding Up A Company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/understanding-the-process-of-winding-up-a-company-in-india\/#Stages_Involved_In_The_Process_Of_Voluntary_Winding_up_A_Company\" >Stages Involved\nIn The Process Of Voluntary Winding up A Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/corpbiz.io\/learning\/understanding-the-process-of-winding-up-a-company-in-india\/#What_is_a_Fast_Track_Exit_Scheme_FTE\" >What is a Fast Track Exit Scheme (FTE)?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/corpbiz.io\/learning\/understanding-the-process-of-winding-up-a-company-in-india\/#Situation_Where_a_Company_Can_Wound_Up_Through_FTE\" >Situation Where a Company Can Wound Up Through FTE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/corpbiz.io\/learning\/understanding-the-process-of-winding-up-a-company-in-india\/#Stages_Involved_In_The_Process_Of_FTE\" >Stages Involved\nIn The Process Of FTE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/corpbiz.io\/learning\/understanding-the-process-of-winding-up-a-company-in-india\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Some_Important_Sections_Related_to_the_Winding_up_A_Company\"><\/span>Some Important\nSections Related to the Winding up A Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In layman\u2019s terms, the\nprocess by which a business or a corporation is brought to an end and then its\nassets are redistributed is known as the winding up of a company. Before we\nstart talking about the winding-up process of a company in India, let us look\nat some important Sections related to the winding up a company; and these are\nfollows:<\/p>\n\n\n\n<ul><li><strong><em>Section 271<\/em><\/strong>\nof the Companies Act of 2013 talks about the circumstances in which company may\nbe wound up by the Tribunal.<\/li><li><strong><em>Section 272<\/em><\/strong>\nof the Companies Act of 2013 talks about the petition for winding up a company.<\/li><li><strong><em>Section 273<\/em><\/strong>\nof the Companies Act of 2013 talks about the powers of the Tribunal. <\/li><li><strong><em>Section 274<\/em><\/strong>\nof the Companies Act of 2013 talks about the directions for filing statement of\naffairs.<\/li><li><strong><em>Section 275<\/em><\/strong>\nof the Companies Act of 2013 talks about the company Liquidators and their\nappointment.<\/li><li><strong><em>Section 276<\/em><\/strong>\nof the Companies Act of 2013 talks about the removal and replacement of\nliquidator.<\/li><li><strong><em>Section 277<\/em><\/strong>\nof the Companies Act of 2013 talks about the intimation to Company Liquidator,\nprovisional liquidator and Registrar.<\/li><li><strong><em>Section 278<\/em><\/strong>\nof the Companies Act of 2013 talks about the effect of winding up order.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  <\/li><li><strong><em>Section 279<\/em><\/strong>\nof the Companies Act of 2013 talks about the stay of suits, etc., on winding up\norder. <\/li><li><strong><em>Section 280<\/em><\/strong>\nof the Companies Act of 2013 talks about the jurisdiction of the Tribunal.<\/li><li><strong><em>Section 324<\/em><\/strong>\nof the Companies Act of 2013 talks about the Debts of all descriptions to be\nadmitted to proof.<\/li><li><strong><em>Section 325<\/em><\/strong>\nof the Companies Act of 2013 talks about the Application of insolvency rules in\nwinding up of insolvent companies.<\/li><li><strong><em>Section 326<\/em><\/strong>\nof the Companies Act of 2013 talks about the Overriding preferential payments.<\/li><li><strong><em>Section 327<\/em><\/strong><em> <\/em>of\nthe Companies Act of 2013 talks about the preferential payments.<\/li><li><strong><em>Section 328<\/em><\/strong>\nof the Companies Act of 2013 talks about the fraudulent preference<\/li><li><strong><em>Section 329<\/em><\/strong>\nof the Companies Act of 2013 talks about the transfers not in good faith to be\nvoid.<\/li><li><strong><em>Section 330<\/em><\/strong>\nof the Companies Act of 2013 talks about the certain transfers to be void.<\/li><li><strong><em>Section 331<\/em><\/strong><em> <\/em>of\nthe Companies Act of 2013 talks about the liabilities and rights of certain\npersons fraudulently preferred.<\/li><li><strong><em>Section 332<\/em><\/strong>\nof the Companies Act of 2013 talks about the effect of floating charge.<\/li><li><strong><em>Section 333<\/em><\/strong>\nof the Companies Act of 2013 talks about the disclaimer of onerous property.<\/li><li><strong><em>Section 359<\/em><\/strong>\nof the Companies Act of 2013 talks about the appointment of Official Liquidator.<\/li><li><strong><em>Section 360<\/em><\/strong>\nof the Companies Act of 2013 talks about the powers and functions of Official\nLiquidator.<\/li><li><strong><em>Section 361<\/em><\/strong>\nof the Companies Act of 2013 talks about the summary procedure for liquidation.<\/li><li><strong><em>Section 362<\/em><\/strong>\nof the Companies Act of 2013 talks about the sale of assets and recovery of\ndebts due to company.<\/li><li><strong><em>Section 363<\/em><\/strong>\nof the Companies Act of 2013 talks about the settlement of claims of creditors\nby Official Liquidator.<\/li><li><strong><em>Section 364<\/em><\/strong>\nof the Companies Act of 2013 talks about the appeal by creditor.<\/li><li><strong><em>Section 365<\/em><\/strong>\nof the Companies Act of 2013 talks about the order of dissolution of company.<\/li><li><strong><em>Section 375<\/em><\/strong>\nof the Companies Act of 2013 talks about the winding up of unregistered\ncompanies.<\/li><li><strong><em>Section 376<\/em><\/strong>\nof the Companies Act of 2013 talks about the power to wind up foreign companies\nalthough dissolved.<\/li><li><strong><em>Section 377<\/em><\/strong>\nof the Companies Act of 2013 talks about the provisions of Chapter cumulative.<\/li><li><strong><em>Section 378<\/em><\/strong>\nof the Companies Act of 2013 talks about the saving and construction of\nenactments conferring power to wind up partnership firm, association or\ncompany, etc., in certain cases.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Are_The_Different_Ways_To_Close_A_Company\"><\/span>What Are The\nDifferent Ways To Close A Company?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>According\nto the Companies Act of 2013, the process of winding up a Company has been\ndivided into there, these are as follows:<\/p>\n\n\n\n<ul><li>Strike off a company<\/li><li>Winding\nup of the company<\/li><\/ul>\n\n\n\n<p>The\nprocess of winding up has been further sub-categorised into two; as per <em>Section 270,<\/em> a company can be winded up\nin the following ways:&nbsp;<\/p>\n\n\n\n<ul><li>Compulsory\nWinding up of Company by Tribunal<\/li><li>Voluntary\nWinding up of the Company<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_Compulsory_Winding_Up_Of_Company\"><\/span>What Is Compulsory Winding Up Of Company?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In a case where a company is forced to wind up its operations by the law is known as compulsory winding up or wind up by a Tribunal. Here the Tribunal means, the National Company Law Tribunal. This can be decided in a court of law, or it can come in the form of a court order.<\/p>\n\n\n\n<p>In the above case, the company is required to appoint a liquidator for the company. The liquidator will be responsible for managing the sale of the company and all its assets and to distribute all the assets after the liquidation among all the creditors.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cases_Where_a_Tribunal_Can_Order_To_Wind_Up\"><\/span>Cases Where a Tribunal Can Order To Wind Up<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As\noutlined under <em>Section 271<\/em> of the\nCompanies Act, a Tribunal has all the power to issue the order to wind up a\ncompany, but only in the following circumstances. The circumstances are as\nfollows:<\/p>\n\n\n\n<ul><li>Bypassing\nof special resolution for the winding up;<\/li><li>Inability\nto pay debts;<\/li><li>Deadlock\nin management;<\/li><li>Sick\nCompany;<\/li><li>Acts\nagainst the State;<\/li><li>Fraudulent\nConduct of Business;<\/li><li>In\ncase the company fails to file financial statements with the Registrar;<\/li><li>In\nthe case where it was just and equitable to wind up.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_All_Can_File_The_Petition_For_Winding_Up_By_Tribunal\"><\/span>Who All Can\nFile The Petition For Winding Up By Tribunal?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nfollowing people can make a petition to the Tribunal for winding up the matters\nof a company as per the <em>Section 272<\/em>\nof the Companies Act of 2013:<\/p>\n\n\n\n<ul><li>The\nCompany, as per Section 272(5) of the Companies Act;<\/li><li>Any\ncreditor(s) or potential creditors of the company;<\/li><li>Any\nContributors to that company as per <em>Section\n272(3)<\/em> of the Companies Act; <\/li><li>The\nRegistrar;<\/li><\/ul>\n\n\n\n<p><strong>Note:<\/strong> The Registrar must obtain prior permission from Central Government\nbefore presenting the petition for winding up of the company. Further, it is\nmandatory for the Central Government to give the company a reasonable\nopportunity before granting such permission to the Registrar. A copy of such\npetition must be sent to the Registrar, and then the Registrar must submit his\nview to the Tribunal within the period of sixty (60) days from receiving such\npetition.<\/p>\n\n\n\n<ul><li>Any\nperson who the Central Government authorises to do so;<\/li><li>By\nthe Central Government or State Government itself, in a case where the company\nis acting against the interest of sovereignty and integrity of India<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Stages_Involved_In_The_Process_Of_Winding_up_A_Company_by_Tribunal\"><\/span>Stages Involved\nIn The Process Of Winding up A Company by Tribunal<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The following is the\nprocedure for compulsory winding up a company by tribunal:<\/p>\n\n\n\n<ul><li>The company has to appoint a liquidator as per the terms of <em>Section 275<\/em> of the Companies Act. The liquidator will be responsible for examining the debts and credits of the company in order to check the eligibility of the company for compulsory wind up by the tribunal.<\/li><li>Following this, the liquidator has to submit the report to the Tribunal as per Section 281 of the Act.<\/li><li>After analysing the report, the tribunal then issues an order to the liquidator to start the process of dissolving the company as per <em>Section 281<\/em> of the Companies Act, 2013.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_Voluntary_Winding_Up_A_Company\"><\/span>What Is Voluntary Winding Up A Company?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The second way of closing\na company is through voluntary winding up. The process is generally initiated\nby the shareholders or partners of the company, and it is usually done by\npassing a special resolution.&nbsp;The decision to wind up voluntarily is taken\nwhen the shareholders feel that the company will be insolvent and will not be\nable to discharge its liabilities. The process of winding up terminates the\nexistence of the corporation by selling off its assets and settling all the\noutstanding financial obligations.<\/p>\n\n\n\n<p>The\nmain motive behind the wind-up is to cash out the business that does not have a\nbright future or does not have a purpose left to serve. Such type of\nliquidation or winding up is not mandated by the court. It is purely approved\nby the shareholders and board of directors of the company, also in a case where\nmarket situations are not favourable and stakeholders feel that the company is\nfacing challenges due to such conditions. In that situation, they can pass a\nresolution to wind up the company.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Stages_Involved_In_The_Process_Of_Voluntary_Winding_up_A_Company\"><\/span>Stages Involved\nIn The Process Of Voluntary Winding up A Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The following is the procedure for voluntary\nwinding up a company by the board of directors of the company:<\/p>\n\n\n\n<ul><li>Firstly\npass a resolution regarding the wind-up in the general meeting of the company;<\/li><li>Afterwards,\nprovide the declaration of the solvency of the company for all the unpaid\ndebts;<\/li><li>The\nauditor should prepare a report regarding the financial statement of the\ncompany.<\/li><li>The\nauditor\u2019s report, along with the declaration of solvency to the Registrar of\nCompanies (ROC);<\/li><li>The\ncompany is required to appoint a liquidator for the winding up process; also,\nthe process for winding up starts from the date of passing such resolution;<\/li><li>The\nliquidator then prepares the report and calls a general meeting of the company\nto declare the final accounts of the company before the wind-up process;&nbsp;<\/li><li>Then\nthe company has to pass the resolution by a majority;&nbsp;<\/li><li>After\nthe resolution has been passed by the board of directors, the liquidator must\nsend a copy of statements to the ROC and a copy of its report to the Tribunal;<\/li><li>After\nanalysing the report, the Tribunal must pass an order to complete the\nwinding-up process;<\/li><li>A\ncopy of the Tribunal\u2019s order must be sent to ROC by the liquidator within a period\nof thirty (30) days from the date of passing such order. Failure to do this\nwill attract some penalties on the liquidator.&nbsp;<\/li><li>If\nROC is satisfied, it approves the winding up of the company and finally strikes\nthe name of the applicant company from the Registrar Of Companies.&nbsp;<\/li><li>Then\nROC sends a notice for publication in the Official Gazette of India.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_a_Fast_Track_Exit_Scheme_FTE\"><\/span>What is a Fast Track Exit Scheme (FTE)?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The <strong>MCA<\/strong><sup><a class=\"text-primary\" href=\"https:\/\/www.mca.gov.in\/\"><strong>[1]<\/strong><\/a><\/sup>, also known as the Ministry of Corporate Affairs, through a notification dated December 26, 2016, introduced a scheme called as Fast Track Exit also known as FTE. &nbsp;As the name suggests, through this scheme, companies can strike off the name from the Registrar of Companies (ROC). The aim behind introducing this scheme was to provide all the defunct companies with an opportunity to get their names removed from ROC.<\/p>\n\n\n\n<p>The FTE scheme does not apply to the following companies:<\/p>\n\n\n\n<ul><li>Listed\ncompanies as per Indian Company law;<\/li><li>Companies\nthat are de-listed due to non-compliance with any other statutory laws;<\/li><li>Section\n8 Companies;<\/li><li>Vanishing\ncompanies as per Indian Company law;<\/li><li>Companies\nthat are under some inspection\/investigation;<\/li><li>Companies\nagainst which prosecution for a non-compoundable offence is pending in court;<\/li><li>Companies\nthat have outstanding public deposits, secured loans or dues towards the banks\nand financial institutions or any Government Departments or have management\ndisputes;<\/li><li>Company\nfor which filing of documents has been stayed by court or Company Law Board\n(CLB) or Central Government or any other competent authority.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Situation_Where_a_Company_Can_Wound_Up_Through_FTE\"><\/span>Situation Where a Company Can Wound Up Through FTE<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following is the\nlist of situations where a company can strike off their name from ROC under the\nFTE (Fast Track exit) scheme. The companies that fall under the following\nconditions will be known as defunct companies, and therefore, they can wind up\ntheir business through a Fast Track exit scheme. &nbsp;The situations are as follows:<\/p>\n\n\n\n<ul><li>When a company does not have any liabilities or assets left;<\/li><li>When a company has not performed any business activity after its incorporation;<\/li><li>When a company has not performed any business for at least one year. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Stages_Involved_In_The_Process_Of_FTE\"><\/span>Stages Involved\nIn The Process Of FTE<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The process of striking\noff the company\u2019s name by the way of <strong>Fast Track Exit Scheme<\/strong><strong>,\ninvolves the following steps:<\/strong><\/p>\n\n\n\n<ul><li>The first step involves by sending an application to\nthe Registrar of Companies (ROC) under form FTE.<\/li><li>The applicant must submit the abovementioned form\nalong with the prescribed fee.<\/li><li>Once the application has been received, the ROC will\nexamine the request form. Also ROC is required to start the process of winding\nup within a period of 30 days from the date of receiving such a request.<\/li><li>The ROC, after this, places the name of the\napplicant company on the MCA portal, so that all the stakeholders who want to\nraise the objection against such a strike off can do so, but only within a\nperiod of 30 days.<\/li><li>After this, the ROC intimidates the&nbsp;Income Tax Department about the winding up. If the\ndepartment has any concern or query, they can raise that in front of the ROC,\nwithin a period of 30 days.<\/li><li>If\nno one has raised any query and ROC is satisfied, it approves the winding up of\nthe company and finally strikes the name of the applicant company from the\nRegistrar Of Companies.<\/li><li>Then&nbsp;ROC\nsends a notice for publication in the Official Gazette of India.<strong><\/strong><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The process of <strong><a href=\"https:\/\/corpbiz.io\/winding-private-limited-company\">winding up a company<\/a><\/strong> brings the existence of a company to an end. The company gets dissolved by selling all of its assets so that it can pay off debts. During the winding-up process in India, the company pay off its debts, remove all the liabilities and afterwards distribute all the remaining amount in between the members of the company as per their shareholding in the company. Winding up is an essential term for all the business owners to understand. One must follow all the legal processes in order to wind up a company in India, so make sure that you follow each and every step.<\/p>\n\n\n\n<p><strong>Also Read<\/strong>:<br><a href=\"https:\/\/corpbiz.io\/learning\/legalities-for-winding-up-of-a-private-limited-company-in-india\/\">Marking The Legalities For Winding Up Of A Private Limited Company In India<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The process of liquidating a company is often known as winding up a company; therefore, both terms go hand in hand. Through the process of winding up, the existence of a company comes to an end. Even during the process of winding up, the company performs its day to day activities. The only purpose for [&hellip;]<\/p>\n","protected":false},"author":48,"featured_media":54298,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[385],"tags":[3370],"acf":{"service_id":"70"},"authorName":"Astitva Kumar","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/12\/MicrosoftTeams-image-27.jpg","authorDescription":"Astitva Kumar is an advocate by profession and has completed her BBA. LLB from IP University. She is an avid reader, researcher, and legal writer. Her areas of interest include mediation, conflict resolution, finance, cyber laws, and taxation.","postViews":4325,"readingTime":9,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/54296"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/48"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=54296"}],"version-history":[{"count":4,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/54296\/revisions"}],"predecessor-version":[{"id":54302,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/54296\/revisions\/54302"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/54298"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=54296"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=54296"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=54296"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}