A private limited company or famously known as PVT LTD is a privately held company. This implies that the business limits owner liability to its shares and limits number of shareholders to 50. It also restricts shareholders from trading shares publicly.

Closing Private Limited Company becomes a necessity due to many reasons voluntarily or by the tribunal. Business loss, bankruptcy, passing away of promoters, etc., are few of the reasons as to why closing company in India becomes the only option. 

we provides thorough services during this difficult transition of closing Private limited company in India.  

Eligibility Criteria for Closing Private Limited Company in India

Voluntarily closing a Private Limited Company:

This is possible if,

The Company wants to close the operations by passing a special resolution. In simple words, the choice to strike-off company is taken deliberately.

There is an occurrence of an event as mentioned in the articles of association that requires the shut-down of private limited company.

The Company’s duration expires, if any, as fixed in the articles of association. In this case, the process of winding up a company is voluntarily initiated.

Compulsory closing of Private Limited Company:

This happens in the following scenarios,

The Company is unable to pay its debts. At that time strike-off of company and liquidation happen in tandem.

Tribunal orders the Company to be shut down or is of the opinion that the Company is equitable and must 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, friendly relations with foreign states, public order, decency or morality

If the Company has been conducted in fraudulent manners or is guilty of fraud or misconduct