How to

Close a Company in India

Start your company closing process online at just ₹19,999/- only.

Ebizfiling helps you step-by-step to close your company legally with MCA approval.

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How to Close a Company in India 

All You Need to Know

When a business stops operating or has completed its purpose, it must be formally ended under the law. Closing a company in India means legally removing its name from the records of the Ministry of Corporate Affairs (MCA). Once the process is completed, the company no longer exists in government records and is free from future compliance or tax filings.

Many business owners believe that simply stopping operations is enough, but that’s incorrect. Unless you officially close your company through the MCA, it continues to attract late filing fees, compliance penalties, and director disqualification risks. Therefore, filing for company closure is essential to protect yourself from legal and financial trouble.

Legal-Steps-to-Shut-Down-Your-Company-in-India

Under Section 248 of the Companies Act, 2013, a company can apply to the MCA for removal of its name if it has not carried out any business for the last two financial years or has no assets or liabilities. The process is completely online and requires filing a specific form along with supporting documents and approvals from all directors.

In simple terms, closing a company in India gives business owners a clean legal exit. It confirms that all dues are cleared, liabilities are settled, and the company has officially stopped existing as a separate legal entity.

Types of Company Closing in India  

Type

Description

Voluntary Closing

When owners decide to close the company themselves as it is inactive.

By ROC Order

When MCA identifies that the company is not filing returns or operating.

Tribunal-Ordered Closing

When the National Company Law Tribunal (NCLT) orders to close the company due to specific reasons.

Why Choose Ebizfiling for Company Closing in India?  

Ebizfiling makes the entire process of how to close a company in India simple and stress-free.
From checking eligibility and preparing documents to filing with the MCA and tracking approval, we handle everything for you. With our expert assistance, you can legally close your private limited company without errors or delays. We have more closure services such as Strike off LLP, Strike of OPC, and Dissolution of Firms.  For guidance, call  09643203209 or email info@ebizfiling.com.

Company Closure Charges

Choose Your Package

ESSENTIAL

19999/-

(All Inclusive)

  • Wind up a company with no transactions since incorporation
  • Preparation of Statement of Accounts
  • Preparation of Indemnity Bond
  • Preparation of Affidavits
  • Documents preparation

ENHANCED

22999/-

(All Inclusive)

  • Wind up a company with no transactions since incorporation
  • 2 Directors' DIR 3 KYC
  • Form 20A Filing for capital upto INR 1 Lakh
  • Preparation of Statement of Accounts
  • Preparation of Indemnity Bond
  • Preparation of Affidavits
  • Documents preparation

ULTIMATE

28999/-

(All Inclusive)

  • Wind up a company with no transactions since incorporation
  • 2 Directors' DIR 3 KYC
  • Form 20A Filing for capital upto INR 1 Lakh
  • 2 DSC Application Class III Individual 2 Year Validity
  • GST Cancellation Application
  • Preparation of Statement of Accounts
  • Preparation of Indemnity Bond
  • Preparation of Affidavits
  • Documents preparation
  • Filing of GSTR-10 (Final Return)

Benefits of Closing a Company Legally  

Avoid Penalties

It helps you stop future late filing charges and avoid unnecessary compliance fines.

Clear Legal Status

It ensures your company’s name is permanently removed from MCA records.

Director Relief

It releases directors from ongoing responsibilities and future legal liabilities.

Financial Safety

It protects your personal and company assets from future financial disputes.

Clean Record

It maintains your good business reputation and supports future company formation.

Quick Exit

It provides a smooth, transparent, and officially recognized end to your business.

Documents Required to Close a Company in India  

Company Closure Documents

  • Company PAN card copy

  • Board resolution for company closing

  • Consent letter from all directors

  • Statement showing no assets or liabilities

  • Affidavit and declaration by directors

  • Digital Signature Certificate (DSC)

  • Address and ID proof of directors

  • Latest Income Tax filing proof (if any

Step-by-Step Process on How to Close a Company in India

1

Eligibility Check

2

Document Preparation

3

Online Filing

4

MCA Review

5

Final Approval

What Does Ebizfiling Do for Company Closing?  

  • Eligibility Verification: Our experts first review whether your company meets MCA rules for closing and confirm all pre-conditions.

  • Document Preparation: We draft affidavits, director declarations, and resolutions accurately for smooth approval.

  • Filing with MCA: The complete application is filed online through the MCA portal using verified digital signatures.

  • Application Tracking: We continuously monitor your filing status and promptly address any ROC queries or remarks.

  • Final Confirmation: Once approved, we share the official company closure confirmation issued by the MCA.

FAQs

FAQs on How to Close a Company in India  

Get answers to all your queries

  • How to close a company in India legally?

    To close a company legally in India, you must apply to the Ministry of Corporate Affairs (MCA) using the prescribed online form. Once approved, the company is removed from MCA records, and all legal responsibilities of directors end.

  • How to close a private limited company in India if it is inactive?

    If your private limited company has not been doing business for over two years, you can apply for closure under Section 248 of the Companies Act, 2013. This is the simplest way to legally end an inactive company.

  • What is the government process to close a company in India?

    The process involves submitting a closure application, attaching director affidavits, financial statements, and obtaining MCA approval. Once verified, the MCA issues a notice confirming that the company is closed.

  • Can I close a company with pending loans or dues?

    No. Before applying to close a company, all debts, loans, and liabilities must be cleared. The company must have no pending creditors or ongoing financial obligations.

  • Is there any penalty for not closing a company properly?

    Yes. If you do not formally close your company, MCA continues to impose late filing and penalty charges for every year of non-compliance, and directors may be disqualified.

  • How long does it take to close a company in India?

    It usually takes between 3 to 6 months for the MCA to review and approve the closure, depending on document accuracy and the workload of the Registrar of Companies (ROC).

  • Can I close a company that never started operations?

    Yes. A company that never commenced business can apply directly for closure. It must file an application confirming that it has no assets, liabilities, or bank transactions.

  • Do I need all directors’ consent to close a company?

    Yes. Every director must give written consent and sign the affidavits and indemnity bonds submitted to the MCA for company closure.

  • What documents are required to close a private limited company?

    The key documents include the company’s PAN, director ID and address proofs, a no-liability statement, affidavits from directors, a board resolution, and the company’s financial statement showing nil assets or liabilities.

  • Can a company under investigation or legal dispute be closed?

    No. If a company is involved in a legal case, investigation, or has pending proceedings, it cannot apply for closure until those matters are resolved.

  • Is it mandatory to file the closure form online?

    Yes. The entire process of how to close a company in India is online through the MCA portal. Forms must be submitted digitally using directors’ Digital Signature Certificates (DSC).

  • Will the company’s PAN and GST automatically get cancelled?

    No. You must separately apply for PAN and GST cancellation after filing for company closure to ensure all tax registrations are properly deactivated.

  • What happens after the company is officially closed?

    Once the MCA approves the application, the company name is removed from the public record, and it stops existing as a legal entity. It cannot carry on any business or hold any property.

  • Can a closed company be reopened later?

    Yes. A closed company can be restored within 20 years by filing an appeal before the National Company Law Tribunal (NCLT), provided valid reasons are shown.

  • Do I need to file annual returns before applying for closure?

    Yes. If there are any pending annual filings, they should be completed before you apply to close the company. This avoids rejection by the MCA.

  • What is the cost to close a company in India?

    The government filing fee for closure is ₹10,000, excluding professional charges. Ebizfiling offers complete assistance at a reasonable additional service fee.

  • Is it necessary to have a Chartered Accountant for this process?

    Yes. A Chartered Accountant must verify the company’s final statement of accounts showing no assets or liabilities before filing the closure application.

  • Can foreign directors close a company registered in India?

    Yes. Foreign directors can also close an Indian company by signing required documents digitally and following the same MCA procedure.

  • Can I track my company’s closure status online?

    Yes. You can check the progress or final approval of your company closure on the MCA website under the “Company Master Data” section.

  • Why should I choose Ebizfiling to close my company in India?

    Ebizfiling ensures your company is closed correctly and legally by preparing all documents, filing them online, tracking updates, and sharing final confirmation once approved.

Reviews

  • Client Review & Ebizfiling

    Amrish Ganatra

    28 Nov 2017

    "Our Company being an Indian Subsidiary requires much compliance, but ebizfiling has provided us end to end services. They are very important part of our business. They handle all of the legal tasks in India. I highly recommend ebizfiling for non-residents thinking of starting a project in India."

  • Ebizfiling

    Chander Verma

    01 Oct 2019

    Ebiz Filling team did all filling conveniently, team is flexible, approachable. I highly recommend EbizFilling to startups like for all financial services.

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    Amir Abbas Sayedrizvi

    05 Aug 2019

    Charges are very affordable and One of the fastest & bestest service I ever get and miss Snehal is too corporative and very dedicated I had recommended to all my colleagues even they also like thier services.

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