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Winding Up Company

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Winding Up Company Registration

Company winding up, or liquidation, is the formal procedure through which a company ceases its operations and is dissolved. This process involves systematically closing the company’s affairs, which includes selling off assets, settling debts with the proceeds, and distributing any remaining surplus to the shareholders according to their ownership stakes. Winding up can be initiated either by a court order or through a voluntary resolution passed by the company. Once the winding-up proceedings are concluded, the company is officially dissolved and no longer exists, marking the end of its corporate existence through this legal procedure.

Requirment

  • Incorporation certificate
  • Company PAN Scan Copy
  • Director's Pan
  • Director's Aadhar
  • Latest Utility Bill
  • COB Filed Acknowledgement
  • Last Filed AOA Copy
  • Last Filed MOA Copy
  • GSTR-10 Filed Acknowledgement
  • Latest ITR Filed Acknowledgement
  • Bank Account Closure Letter
  • Bank Statement

Winding Up

The winding up or winding up of a company in India may be a voluntary winding up of companies or by
court order depending on the conditions prescribing the manner of winding up, distribution of its assets
and termination of its legal existence . . . . Voluntary liquidation can be done by voluntary liquidation of
members or voluntary liquidation of creditors. 

The voluntary resignation of a member begins when the
company’s balance sheet is intact and the member makes a special decision to leave the company.
Voluntary liquidation by the debtor, however, is when a company becomes insolvent and creditors
appoint a liquidator to administer the scheme Conversely, a court may order compulsory incorporation
in circumstances such as bankruptcy, shareholder suit, failure to commence trading within one year of
incorporation etc.

 The action appoints an officer who manages the assets of the company, settles its
liabilities and distributes the balance to the shareholders according to their rights and priorities When all
debts and liabilities are paid, the company is dissolved in and ceases legal existence. The winding up
process in India is governed by the Companies Act, 2013, and includes strict compliance with statutory
procedures, notification of creditors and filing of notices with regulators such as the National Company
Law Tribunal (NCLT).

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FAQ Looking For Something Else?

The following sources are the most frequently requested.

1. What are the types of winding up?

There are two main types of winding up: Voluntary Winding Up: Initiated by the company’s shareholders. Compulsory Winding Up: Initiated by a court order.

2. What is the difference between solvent and insolvent winding up?

Solvent Winding Up: The company can pay all its debts and typically enters a Members' Voluntary Liquidation (MVL). Insolvent Winding Up: The company cannot pay its debts, leading to a Creditors' Voluntary Liquidation (CVL) or Compulsory Liquidation by court order.

3. What happens to the company's assets during liquidation?

The liquidator sells the company’s assets. The proceeds are used to pay off the company’s debts, with any remaining funds distributed to shareholders according to their ownership stakes.

4.Can a company be revived after winding up?

Once a company is officially dissolved, it ceases to exist. However, in certain cases, it may be possible to apply for the company to be restored to the register if there was a mistake or if new information comes to light.

5. What is the cost of winding up a company?

The cost of winding up a company depends on factors such as the size of the company, the complexity of its assets and liabilities, and the fees charged by the liquidator. Costs typically include professional fees, legal fees, and administrative expenses.