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Winding Up / Closure Compliance

What is Winding Up / Closure Compliance?
Winding up or closure compliance is the legal process of formally dissolving a company or LLP by settling liabilities, disposing of assets, and removing the entity’s name from official records. Proper compliance ensures that the entity ceases to exist legally and that directors or partners are relieved from future statutory obligations.

Who Requires Winding Up / Closure Services?
These services are applicable to:
-Private Limited Companies
-Public Limited Companies
-Limited Liability Partnerships (LLPs)
-Section 8 Companies
-Dormant, inactive, or non-operational entities
Entities that have stopped business operations but remain legally active must undergo formal closure.

Why is Winding Up / Closure Compliance Mandatory?
-Closure compliance is mandatory to:
-Legally dissolve the entity
-Avoid ongoing statutory filings and penalties
-Prevent director or partner disqualification
-Eliminate future tax or regulatory liabilities
Failure to properly close can result in continuous penalties, legal notices, and personal liability.

Importance of Proper Winding Up:
-Provides a clean and lawful exit
-Protects directors, shareholders, and partners
-Prevents future compliance burdens
-Ensures no pending liabilities or disputes
-Safeguards reputation and legal standing

Modes of Winding Up / Closure:
-Voluntary Winding Up
Strike Off by ROC
-Tribunal-led Winding Up (NCLT)
-LLP Closure under LLP Act
The appropriate mode depends on the entity’s financial and operational status.

Process of Winding Up / Closure with Nyayapath Legal:
1. Eligibility & Feasibility Assessment
Review of assets, liabilities, and compliance history.
2. Documentation & Resolution
Preparation of board/shareholder resolutions and declarations.
3. Settlement of Liabilities
Closure of bank accounts, tax filings, and creditor settlements.
4. Statutory Filings
Filing required forms with ROC, NCLT, or other authorities.
5. Final Approval & Dissolution
Removal of entity’s name from official records.

Documents Required:
-Certificate of Incorporation
MOA, AOA / LLP Agreement
-Financial statements and audit reports
-Affidavits and indemnity bonds
-Board and shareholder resolutions
-Bank account closure proof
-Tax clearance documents
(Document requirements may vary based on the closure method.)

Additional Considerations:
-Pending ROC filings must be completed before closure
-Tax returns and GST compliances must be cleared
-Section 8 companies require special approvals
-Liabilities must be fully settled
Nyayapath Legal ensures end-to-end coordination, minimizing delays and risks.

Why Choose Nyayapath Legal?
-Expertise in voluntary and compulsory winding up
-Clear guidance on best closure method
-Accurate and timely statutory filings
-Confidential handling of sensitive matters
-Complete post-closure compliance support