Company winding up u/s 248(2)

Aditi Bhardwaj (Practising Chartered Accountant & Mentor for CA students)   (659 Points)

28 February 2020  

There is a company incorporated in March 2018. The company was formed to fulfill a certain project. Now that the project has come to an end, they wish to wind up. They have had certain bank credit transactions in FY 2019-20 with respect to the project and the last credit was in February 2020. They don't intend to do any business in FY 2020-21 and hence it will only be a compliance burden to keep the company running.

Can they wind up under the fast track exit scheme under section 248(2)?  All annual compliances and statutory formalities are up to date. 

Your valuable inputs are appreciated. Thank you.