Closure of a Company in India

What is Closure of Company?
When existence of the Company as a legal entity comes to an end it is known as the Closure of the Company.

What is the difference between Closure, Winding up, Dissolution of Company?
– Closure of the company is done voluntarily and is done through the fast track exit scheme.

– Winding up of the company may be voluntary or by the order of the Court by appointing an official liquidator to monitor the process of winding up.

– Dissolution is initiated by the Court for ending the legal existence of the Company.

Why ROC filing is required for Closing a Company?
It is necessary to file Closure with the ROC as ROC or MCA data base need to be updated and the Company is free from all its legal compliances as it is officially closed.
Even though business of the company is closed, unless closure documents are filed and approved by the ROC, company is not legally closed and the company needs to file all the regular returns.

What is Fast Track Exit (FTE) Scheme?
FTE is a company closure scheme initiated by MCA for easy and faster closure of Company.

Which Company is eligible to apply for Closure of Company?
Any Company which is not a Section 8 Company and has been inoperative for more than 1 year from the date of its incorporation can apply for Closure of Company under FTE scheme.

What documents are required for Closure of Company?
Application for Striking off of the Company, Board Resolution for closure, Consent of Directors, Director’s Affidavit, Indemnity Bond, Statement of Assets and Liabilities.

What Forms to be filed for Closing Company under Easy Exit Scheme of ROC?
Form FTE

What is time limit to file Closure documents with ROC?
The Form has to filled be filed with ROC office within 30 days from the date of Signing of the Statement of Assets and Liabilities.