Closing of a private limited company

In this case, Since the company is incorporated in Dec 2013, You can go for FTE mode as suggested by Vandana ji.

If there is No/NIL Transcation during the year and upto 31.3.2014. If Assets and Liabilites is NIL except for share capital. Then in my view

1.No need to file any ITR with IT Dept.

2. Pass a Board Resolution for closing of comapny atleat 6 months before close of FY

3. Affadivit from all the Director (Normally in 20 Rs Stamp paper.)

4. Indemnity Bond to be signed by All the Director (Normally in 100 Rs Stamp paper.)

5. Statement of Accounts certified by CA

Hello,

To close a private limited company in India, you need to follow a systematic process to ensure compliance with the legal and regulatory requirements. Here's what you must follow as per your questions:

1. How to Close My Company ASAP?

The quickest way to close your company is through the Fast Track Exit (FTE) method if your company fulfills the criteria of being defunct or non-operational for a period of more than a year. Alternatively, you can opt for voluntary liquidation under the Insolvency and Bankruptcy Code (IBC) if you want to cease operations and settle outstanding liabilities. Both these methods require approval from shareholders, creditors, and, of course, regulatory authorities like the Registrar of Companies (ROC) and MCA.

2. Should I File ITR or Audit the Company Before Closing?

Yes, it is mandatory to clear all pending financial obligations. This includes filing the final Income Tax Return (ITR), completing any required audits, and ensuring there are no outstanding statutory dues like GST or TDS.

3. What are the Fines or Penalties if ITR is not filed?

Failure to file the ITR may result in penalties under the Income Tax Act, including late fees of up to ₹10,000 and additional interest on pending taxes. Frequent cases of non-compliance could also lead to prosecution.

If you want to close your private limited company in a shorter time span, do adhere to legal obligations as it can save you from unnecessary fines and penalties. For a smooth process of closing your company, adhere to proper documentation and seek professional assistance here: https://www.setindiabiz.com/winding-up-company

Since your company was incorporated on 31st December 2013 and has never had a current account or financial transactions, here’s what you need to know about closing it:

1. Can You Close the Company Quickly?

Yes, you can apply for closure under Section 248(2) of the Companies Act, 2013 through the Fast Track Exit (FTE) scheme. Since your company has been inactive for years, this is the quickest way to shut it down. You need to file Form STK-2 with the Registrar of Companies (ROC).

2. Do You Need to File ITR or Conduct an Audit Before Closure?

• ITR Filing: If your company has never filed Income Tax Returns (ITR), you might need to file nil returns for previous years before applying for closure.
• Audit Requirement: If your company never conducted business and had no transactions, you are likely exempt from a full audit. However, if there were transactions, you may need an audit before closure.

3. What Are the Penalties for Not Filing ITR?

• If you haven't filed ITR for past years, you might face a late filing penalty of ₹10,000 per financial year (under Section 234F of the Income Tax Act).
• Non-compliance with ROC filings (MCA) may result in your directors being disqualified for 5 years under Section 164(2).
• If the company is defunct (inactive for over two years), no major penalties are likely, but it's best to file for closure formally.

Check your company’s MCA status (on the MCA website) to confirm its compliance history. You can consult a CA or professional to close a company.