Close the Pvt Ltd Company

In simple terms, liquidation refers to the process of closing down a business’s operations. There can be various reasons for a business to choose this course of action, such as a lack of willingness to continue, insolvency, or other circumstances. Liquidation involves selling a company’s assets to fulfill its obligations and settle liabilities.

When a business undergoes liquidation due to bankruptcy, the liquidator sells the company’s assets to repay all outstanding debts. Any remaining funds after settling the creditors’ claims are distributed among the company’s shareholders. The process of company liquidation is intricate and requires careful handling.

The board must hold a meeting to approve the dissolution of the company. It is advisable to appoint an official liquidator or insolvency expert to oversee the process. Concurrently, the approval of the Income Tax Department’s NOC (No Objection Certificate) should be obtained. Additionally, before commencing the winding-up proceedings, a notification must be sent to the Insolvency and Bankruptcy Board of India (IBBI) within seven days of passing the resolution. The entire winding-up process of the company should be completed within 12 months from the commencement of the company’s liquidation.