Winding up a private limited company is a tedious, but necessary, procedure. Without doing so, you would need to annually meet the requirements of the Registrar of Companies (which means spending money on audit and compliances). The bigger reason you would want to do this, of course, is because it releases the assets and investments made by you.
A public accountant would be appointed by the court as a liquidator. The powers of the directors would devolve upon this person and he would be mainly responsible for accumulating all the assets of the company and paying off its debts. The excess would then be disseminatedamongst the members.
A statement of account has to be prepared, stating that there are no assets and liabilities except share capital and profit and loss debit balance. An affidavit and indemnity needs to be executed by all directors. If there is any unsecured loan, a waiver letter should be submitted.
Depending upon the type of industry, the following elements are central to the drafting of vendor agreements
Approx… 30 working days The statement of accounts must be submitted no more than a month before submission of the application. This is a declaration to the RoC that only what is submitted is to be considered and that the company has no other assets or liabilities.
Approx… 25 working days Within a month of the submission of the statement of accounts, the application must be submitted along with the documents mentioned above.
Approx… 3 months It takes at least two to three months to complete the closure of your company, but it could take much longer, depending on the findings of the liquidator appointed.