The Indian government has taken measures for making the business processes easy to do the business. But at the same time the government has shown the willingness to take swift action against the companies and directors who don’t comply with the compliances. One thing that has really become easy in recent times is to close the company when the board of directors feel like calling it a day and wind up for the future.

But to close a company, there are some conditions that must be met before the company could be closed, and these conditions are

A company can call for closure of business when

• ● It has not commenced business within one year of its incorporation
• ● When the company is dormant and has not carried out any business activity, process or transaction for the last two years since incorporation
• ● The subscribers have not paid out the subscription money

The company has to fill e-form STK-2 and submit it to the resgistrar for removing the name from the registrations database.

The process of closure of company

• 1. Call a board meeting and pass resolution for closure
• 2. Pay off all the liabilities before holding EGM
• 3. Convene EGM
• 4. Pass special resolution for closure
• 5. Fill the STK-2 form