Winding Private Limited Company
There are many times a business is just not doing well or when you decide that your aim for the company is different as the aims of the other directors of the company. This may lead you to finally decide and shut down the company. It may even due to the business not performing well which can cause you to take this step. Whatever the case maybe, once the business is shut down and over it seems the job is done. Well, this is not the case. Shutting down a business is not the same as winding private limited company or shutting down the company as well. Once you have shut down the business, you must also close the company down. The company exists on paper as well, with the registrar of the companies and unless you take steps to wind it up, it will exist there for years to come.
Winding private limited company is not an easy task to do, it is a tedious yet, a necessary procedure that may even take years to complete. If you think you no longer want to run the business and the company then it is best to shut it down or else you would have to meet the requirements of the Registrar of Companies every year. This means, you would have to spend unnecessary amount of money on compliance and audit formalities when the business is not even running. Moreover, winding private limited company would also free up the investments and the asset which may be involved in the company.
What are the requirements for Winding Private Limited Company?
- Appointment of Public Accountant
- The required documents for Winding Private Limited Company
A public accountant would be appointed as a liquidator by the court on your behalf. This person would be the one responsible for accumulation of the assets of the company as well as for paying off all the debts of the company and the directors power would devolve around the liquidator. The surplus that would be left after the liquidation of the assets would then be distributed amongst the members.
There has to be a statement of account that clearly states that there are no more assets or liabilities, except the share capital and a debit balance of the profit and loss statement. There has to be an affidavit and indemnity which would be executed by all of the directors of the company. You also need to give a waiver letter which should be submitted in case there is a loan that is unsecured taken by the company.
Winding Private Limited Company Procedure
- Thirty working days
- Twenty-five working days
- Three Months
After the application for winding private limited company has been submitted, the applicant has about a month to give in their statement of accounts. This acts as a declaration which is made to the RoC on behalf of the company which implies that there are no other assets or liabilities of the company and the statement of accounts that has been submitted is all what the company has. As such, it takes about 30 working days for the whole procedure to take place.
Once the statement of accounts has been submitted to the RoC by the company, then they have about 1 month for the submission of the rest of the documents that are required (as mentioned above). We have well trained and experienced representatives that can guide you through the process of documentation.
It generally takes about 2-3 months for a winding Private Limited Company. It may even take longer for the closure of the company in case of the findings of the liquidator who has been appointed. As such the winding up of the Private Limited Company may depend from case to case.
How we can help you in Winding Private Limited Company?
Just like setting up and registering for a company requires some help and guidance, the same way, help and guidance is required with the Winding Private Limited Company. In fact, the closure or the winding up of a private limited company is generally more of a tedious and a long process. It requires a lot of documentation and some expert advice is need, especially when it comes to dealing and the settlements of the accounts in order to ascertain there are no more pending debts and how to deal with the assets, As such, we are there to guide a company in such a scenarios by providing an expert liquidator who can help and guide not just with the winding private limited company but also with the filing and the submission of the applications and all of the documentation. Dealing with the government is also not an easy task and unless your documentation is complete, your whole application will be deemed worthless and you will have to start over again.