What is mean by Private Company Closure?

The Process of closing a Private Limited Company is known as Strike off or company closure. Company closure is done under newly notified rules Companies (Removal of Names of Companies) Rules, 2016 which governed by section 248 of Companies Act, 2013. If you are not running your company, we recommend you to close your Private Limited Company.

How to Close Private Company in India?

A Company closure is filed under Form STK 2 (Earlier form was FTE) along with the government fees of Rs.5000/- and some necessary docs. However it is important to note the cases where closure can be filed. A Company closure can be filed after the following steps:

• Pay all Liabilities: The first step is to repay all the liabilities of the company and ask for written No Objection Certificate from them. However, in case you have not started the business/operations, then this clause does not apply to you.
• Need 75% Consent: This is a very new requirement which is to be complied for Private Limited Company closure. To wind up the company, you need at least 75% consent of the shareholders/members of the company Further, one director is also needs to be notified to take care of all the responsibility for company closure.
• Prepare Application: Once consent is assigned, next step is to prepare application and file the same with the ROC.