Closure of a Private Limited Company refers to legally strike off the name of the Company from Register of Company by the Respective ROC after following a proper process as described by law. This came into force via Notification dated 26th Dec 2016 through which MCA notifies the sections 248, 249, 250, 251 & 252 of Companies Act, 2013.
Here are the eligibility criteria for a company to be closed:
(i) Any Company which has failed to commence business within one year of its incorporation.
(ii) A company is not carrying on any business or operation for a period of two immediately preceding financial years and has not made any application within such period for obtaining the status of a dormant company under section 455.
Companies fulfill either of the above-said conditions is eligible to get it name to strike off of the register of Companies via the procedure of Strike off.
(i) Arrange all required documents
(ii) Draft the Application
(iii) File the same with ROC
(iv) ROC send Notice for Objection to Closure
(v) ROC closes the Company, if no objection filed.