Wind up a company under Fast-Track Exit Mode with only two Directors and no transactions since incorporation.
Close a Company
To avoid annual compliance formalities and penalties for non-compliance it is advisable to wind up an inactive or dormant company. Eazy Startup offers winding up of a private limited company from Rs. 20,899/-
A private limited company is considered an artificial judicial person. In order to remain compliant, it requires various crucial elements like appointment of an Auditor, regular filing of income tax return, annual return filing and more. Failing to maintain compliance can result in dire consequences apart from encumbering fines. A Company could face debarment of the Directors from incorporating another Company.
Therefore, the best course of action for a private limited company that has become inactive and has no transactions, is to wind up the Company. The Ministry of Corporate Affairs has introduced Fast Track Exit Mode - an easier way to close inactive companies at a more affordable cost with fewer formalities. This enables inactive private limited companies to quickly close or wind up. A defunct company having NIL assets & liability and has not carried out any business activity or operations for the preceding year or since incorporation, may apply for striking off of name under the Fast-Track Exit Mode. Eazy Startup can help you wind up your Company quickly and easily.
Established under the Companies Act, a company is required to maintain regular Compliance throughout its lifecycle as a legal entity and a juristic person. Fast-track exit can be used to close a company that is inactive and avoid compliance responsibilities.
Fast to Close
Under the fast track exit scheme, a company can be closed in about 90 days. Traditional methods take longer and are more cumbersome. It is advisable to close a company under the fast-track exit scheme, which is much simpler and faster.
Winding up a company is more economical than maintaining compliance for a dormant company. One could incorporate the company again when the time is right and face lesser charges. Eazy Startup can help you wind up a company.
Non-compliance due to not filing on time incurs fines and penalties, including debarment of the Directors from starting another Company. Therefore, it is wiser to officially wind up a company that is inactive rather than face potential fines or liabilities in the future.
Easy to Close
Specifically introduced by the Government, the fast-track exit scheme is designed to make it easy for inactive companies with NIL assets & liabilities to close down or wind up. Hence, the procedure is easy to complete in winding up of a company under the fast track exit scheme.
A Business Expert shall review the activities of the Company and determine if it is eligible for winding up under the Fast-Track Exit Mode. The review process could take 2 - 3 working days.
Our Eazy Startup professional could take 10 - 15 working days, depending on the Company, to prepare the documents prepared for winding up of the company under the Fast-Track Exit Mode.
Winding Up Application
The Fast-Track Exit application along with the necessary documents are submitted to the MCA. The MCA usually approves the application for winding up and closing of the company in about 90 days.