Dissolving a company is a difficult decision that many entrepreneurs face. However, it is important to know the process of dissolution to ensure a smooth exit from the business. In India, there are various ways to dissolve a company, including the fast track method.
The fast track method of dissolution is a time-saving process that can be completed within a few months. It is a relatively simple process that can be completed if the company meets certain requirements. In this blog, we will discuss the requirements and the steps involved in dissolving a private limited company in India using the fast track method.
Requirements for Dissolution
1. All the directors of the company must agree to the dissolution.
2. The company must not have any assets or liabilities at the time of dissolution.
3. The company must have completed all the necessary compliances, such as filing of annual returns, income tax returns, and GST returns.
4. The company must not have any ongoing legal proceedings against it.
Steps For Dissolution
Step 1: Board Meeting
The first step in the process of dissolution is to hold a board meeting. All the directors of the company must be present at the meeting, and they must pass a resolution agreeing to the dissolution. The resolution must be approved by a majority of the directors.
Step 2: Application for Fast Track Exit
Once the resolution is passed, the company must file an application for fast track exit with the Registrar of Companies (ROC). The application must include the following documents:
1. A copy of the board resolution approving the dissolution.
2. A statement of accounts showing that the company has no assets or liabilities.
3. A copy of the latest income tax returns and GST returns filed by the company.
4. A declaration signed by all the directors stating that the company has no pending legal proceedings against it.
Step 3: Approval from ROC
The ROC will examine the application and, if satisfied, will issue a notice for striking off the name of the company from the Register of Companies. The notice will be published in the Official Gazette and on the MCA website.
Step 4: Objections
If there are no objections within 30 days of the notice being published, the ROC will strike off the name of the company from the Register of Companies.
Step 5: Completion of Process
Once the name of the company is struck off, the dissolution process is complete.
Quid Solutions offers fast and hassle-free services for the dissolution of a private limited company in India using the fast track method. Our fees for the complete process are Rs. 25,000, and we provide end-to-end support, including filing the application for fast track exit and obtaining approval from the ROC. Contact us today to learn more about our services.
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