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Procedure to close a private limited company

Darshan Dodiya (Student CA Final ) (392 Points)

06 November 2012

Hello sir.....

One of my client is a private limited company which is now want to cease its operation.

So, they want to close the company. Please inform me or guide me how to

proceed to close the company including guidance on necessary documents to be filed with

Roc and other regulatory compliance to be fulfilled...

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6 Replies

SUNIL KUMAR JAIN (PRACTISING COMPANY SECRETARY) (187 Points)
Replied 06 November 2012

Dear Mr. Darshan,

In case the Company is having assets and liabilities, it may go for Voluntary winding up 0f the Company under secrion 484 of the Act. Winding up of companies is one of the areas of our practice.

regards,

Sunil K. jain

Practising Company Secretary

9810104162, skj13 @ rediffmail.com

1 Like

Darshan Dodiya (Student CA Final ) (392 Points)
Replied 07 November 2012

Thank you sir....

But i want to enquire about "FAST TRACK EXIT SCHEME" introduced by MCA....

What is the procedure for the same....do a liquidator need to be appointed in

such case?Would you please tell me the entire procedure for it..?

Deepti Aggarwal (Assistant Company Secretary) (143 Points)
Replied 07 November 2012

Dear Mr. Darshan You dont have to appoint a liquidator, Simply you have to do is :-

- make an affidavit individually for each director

- Make indeminity bond of each director duly notorized

- statement of account not prior than one month showing no assets and liablities.

all after notorised and certified by CA to be annexed with Form FTE along with filing fees of Rs. 5000/-

I am Also attaching Circular on FTE Scheme issued by MCA for getting the format of Affidavits, indemnity bond and statement of account.

Attached File : 432087 1081797 circular on fte scheme.pdf downloaded: 297 times

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Darshan Dodiya (Student CA Final ) (392 Points)
Replied 10 November 2012

@ Deepti Agrawal

Thank you mam..

But only outsiders liability should be repaid or even the share capital should be repaid...?

Deepti Aggarwal (Assistant Company Secretary) (143 Points)
Replied 10 November 2012

No, Share Capital is not required to be repaid

YOu must show the total paid up sahre capital in statement of Account and the same amount in the profit and loss account on the asset side as a loss.

Venkataramani.R (CEO) (24 Points)
Replied 14 November 2012

There are two companies, say Company A and Company B.

Company A holds 74% of the shares of company B.

ls it possible to distribute the 74% of the shares of Company B held by Company A to the share holders of company A proportionately. If so, what is the procedure please Will there be any income tax liability arise if such distribution takes place?