Closure of Private Limited Company in Madhya Pradesh

Closure of Private Limited Company in Madhya Pradesh

A Private Limited Company, once registered, becomes a legal entity recognized under the Companies Act, 2013. It exists independently of its shareholders or directors and is subject to certain mandatory annual compliances, such as filing financial statements, income tax returns, and holding board meetings—even if the business is not actively operating.

If a company is no longer functioning, simply stopping business operations or ignoring government filings can lead to penalties and future legal issues. The correct and lawful way to exit is by closing the company officially through procedures laid out by the Ministry of Corporate Affairs (MCA).

Importance of Private Limited Company Closure in Madhya Pradesh

1. Avoiding Legal Penalties: Inactive companies that don’t file their annual returns or income tax returns are marked as non-compliant. Penalties can go up to ₹1 lakh or more, and failure to close properly can result in directors being blacklisted.
2. Preventing Director Disqualification: If a company fails to file returns for three continuous financial years, its directors may be disqualified from starting another company for five years under Section 164(2) of the Companies Act.
3. Freeing You from Compliance Burdens: Even if your business is inactive, you still need to comply with ROC filings, audits, board meetings, and more. Proper closure removes this obligation completely.
4. Cleaning Your Financial History: For banks, investors, or government departments, an unclosed company may be seen as an unresolved liability. Closure maintains a clean financial and legal record.
5. Peace of Mind: You can focus on new ventures or other professional goals without worrying about compliance issues or late fees piling up...!

Eligibility for Company Closure in Madhya Pradesh

To close your private limited company in Madhya Pradesh through the Strike Off route, the following criteria must be fulfilled:

• The company has not been carrying on any business or operations for the last two financial years.
• There are no pending litigations against the company.
• The company has no secured or unsecured liabilities.
• The directors agree unanimously to the closure.
• All mandatory filings, such as income tax returns, ROC filings, and statutory dues, are cleared.
• The company has not made any application for Compromise or Arrangement, which is pending.

If these eligibility requirements are not met, closure will need to be achieved through voluntary liquidation or NCLT proceedings.

Documents Required for Private Limited Company Closure in Madhya Pradesh

1. Board Resolution – A resolution passed by the board of directors approving the company’s closure.
2. Special Resolution – Shareholders’ approval for winding up the company (if applicable).
3. Affidavit by Directors (in Form STK-4) – Declaring that the company has no liabilities.
4. Indemnity Bond (in Form STK-3) – Signed by all directors, taking full responsibility for any liabilities in the future.
5. Statement of Accounts – Showing no assets or liabilities, not older than 30 days from the date of application, certified by a Chartered Accountant.
6. Digital Signature Certificates (DSC) – For filing the application with the MCA.
7. Consent Letter from Directors – All directors must give written consent to strike off.
8. Copy of PAN, AOA, and MOA – For identification and verification.
9. Copy of Incorporation Certificate – Issued by ROC.
10. Bank Closure Letter – If the company had a bank account, a closure letter is mandatory.

Additional documents may be required, depending on the company's status and the jurisdiction in which it is registered.

Procedure to Close a Private Limited Company in Madhya Pradesh

Here is the step-by-step procedure for company closure in Madhya Pradesh via Strike Off:

Step 1: Board Meeting

The board of directors must meet and pass a resolution recommending the closure of the company.

Step 2: Shareholders' Meeting

A general meeting of shareholders must be called to pass a special resolution (with at least 75% voting in favour). Approval is mandatory for closure.

Step 3: Clear Liabilities

All dues—government taxes, salaries, loans, utility bills—must be cleared. The company must also close all its bank accounts.

Step 4: Prepare Necessary Documents

This includes affidavits, indemnity bonds, statement of accounts, and board resolutions. A CA will certify the company’s final accounts.

Step 5: File STK-2 with MCA

Once everything is ready, file Form STK-2 on the MCA portal along with supporting documents and the prescribed fee (currently ₹10,000).

Step 6: Notice by ROC

The Registrar will examine and inspect your application and issue a public notice. The notice will be published in the Official Gazette, allowing any objections within 30 days.

Step 7: Final Strike Off

If there are no objections, the ROC will strike off the company's name from the register and issue a notice to confirm the closure...!

Why Choose Us for the Closure of a Private Limited Company in Madhya Pradesh?

Company closure involves multiple legal, financial, and technical steps. With our professional team, the process becomes seamless and worry-free. Here’s the reason why you should choose us:

• Expert Legal Support: Our team includes qualified CAs, CS, and legal professionals who guide you through each stage...!
• Complete End-to-End Service: From document preparation to filing, we manage everything—so you don’t have to.
• Affordable Pricing: We offer competitive and transparent pricing with no hidden costs.
• Timely Execution: We work fast so that your company can be closed within 3–6 months.
• PAN-India Reach: While we’re based in Madhya Pradesh, our services are offered across India through online consultations and digital filing.
• Compliance-Focused: We ensure full compliance with MCA regulations so you don’t face penalties later.