A private limited company is also known as the LTD Company. In a private LTD company the shares are limited with the number of the shareholders. The shareholders cannot trade the shares publicly here without the consent of the partners. There could be many reasons for the shutting up the company sometimes voluntarily or by tribunal.
The Company do not want to run the operations and want to close passing a special resolution
The Company is unable to pay its debts
Tribunal orders the Company to be shut down
When the Company has not filed financial statements or annual return in the preceding five consecutive years
The Company has acted against the sovereignty and integrity of the state and India
If the company engages itself any misconduct or illegal issues. Most of the time the common reasons why the company gets winded up such as Business Loss, Bankruptcy, passing away of the promoters.
The procedure of closing of a Company happens as follows:
QusHow much time the company should keep before filing the company closing?
AnsIt should be minimum of 1 year of the company incorporation to file for the company closing.
QusWhat are the requirements for the closing of the company?
AnsThe resolution of minimum or more than two directors of the company should be presented in the board of meeting.
QusWho should the company notify before closing it?
AnsThe Private Limited Company must notify the creditors, shareholders, employees, trustees, and other directors.