Here’s everything you need to know:
Any private limited company can wind up its operations in two ways:
A voluntary winding up takes place when
A compulsory winding up takes place when:
PAN card of the company
Certificate of closure of the company’s bank account
An indemnity bond, notarized by the directors
Latest statement of company accounts
Statement of accounts related to all assets and liabilities of the company, audited by a chartered accountant (CA)
Proof of approval of the resolution by 3/4th of the board members
Application to remove the name of the company
Winding up means appointing a liquidator to sell off the assets of the company, divide the proceeds among creditors, and file to the NCLT for dissolution.
Dissolution means to dissolve the company completely. Any further operations cannot be done in the company name.
Winding up is one of the methods through which the dissolution of a company is carried on.
Dissolution is the end process/result of winding up and getting the name stuck off from the Register of Companies.
Existence of Company
The legal entity of the company continues and exists at the commencement and during the winding-up process.
The dissolution of the company brings an end to its legal entity status.
Continuation of Business
A company can be allowed to continue its business during the winding-up process if it is required for the beneficial winding up of the company.
The company ceases to exist upon its dissolution.
The liquidator carries out the process of winding up.
The NCLT passes the order of dissolution.
Filling of winding up resolution or petition, the appointment of the liquidator, receiving declarations, preparation of reports, disclosures to ROC, and filing for dissolution to the NCLT.
Filing of resolutions, declarations, and other required documents to the NCLT to pass dissolution order.
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