About Winding up of a Company
The Winding of the company means the termination of the company in which the assets of the company are distributed to the remaining creditors of the company from the remaining assets after returning their money. It employs a liquidator who looks after the working part of the company.
The Winding of the company means the closure of the company or the end of the life of the company, it happens only when the company is not able to do its work smoothly, there can be many reasons. For example, the company has more debt and is unable to meet it. Or the company could not do business or there could be some other reason.
Winding up a company saves the promoters and the employees of the company from a lots of issues and complications
Advantages of Winding for a Company?
Following are the advantages of winding up of a company:
- Outstanding debts are written off
- Legal action is halted
- Staff can claim redundancy pay
- Leases can be cancelled
- Relatively low costs involved
- Avoid court processes
Packages for Winding up of a Company
We presently offer a single price service :
- Complete documentation
- Court fee and government fee extra
- We provide 24/7 service
The documents to be attached along for the winding of the company are mentioned below.
- Indemnity Bond notarized by Directors (STK 3)
- Statement of Accounts latest
- Statement of Accounts containing assets & liabilities of the Company Audited by CA
- Affidavit in Form STK 4 by every Company
- Special Resolution or Consent of 75% Members
- Optional Documents (If applicable)
- Bank Account Closure Certificates
- PAN Card of the Company
Frequently Asked Questions (FAQs)
Here are the answers to the commonly asked questions.
Which notification makes the voluntary winding up effective?
The following notifications make the voluntary winding up effective:
Ans: The Ministry of Corporate Affairs vide notification dated 30th March 2017 notified Section 59 of the Insolvency and Bankruptcy Code, 2016 which is relating to Voluntary Liquidation of Corporate persons.
The Insolvency and Bankruptcy Board of India (IBBI) vide its notification dated 31st March 2017, notified the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017 which came into effect from 1st April 2017.
Which sections of Insolvency and Bankruptcy Code, 2016 deals with voluntary winding up?
Ans: The following sections of Insolvency and Bankruptcy Code, 2016 deals with voluntary winding up:
1. Section 59 – Voluntary liquidation of corporate persons
2. Section 209 – 215 (both inclusive) – Information utilities
3. Sub-section (1) of section 216 – Rights and obligations of persons submitting financial information
4. Section 234 – Agreements with foreign countries; and
5. Section 235 – Letter of request to a country outside India in certain cases
Who can initiate the Voluntary winding up?
Ans: A corporate person who intends to liquidate itself voluntarily and has not committed any default can initiate the voluntary winding up.