CLOSING OF COMPANY-(EXCLUDING GOVT. FEES)

CLOSING OF COMPANY-(EXCLUDING GOVT. FEES)

Company closure in India requires completing several formalities, primarily aimed at settling all liabilities, liquidating assets, and notifying the Registrar of Companies (RoC). While government filing fees are mandatory, a significant portion of the closure costs consists of other expenditures and legal obligations.

Professional fees

The largest portion of your non-governmental expenses will be the fees paid to professionals who guide you through the closure process.

Voluntary strike-off

This is the simplest and most cost-effective method for companies that are defunct and have no pending liabilities.

• Cost: Approximately ₹10,000 to ₹50,000.
• Services: A Chartered Accountant (CA) or Company Secretary (CS) will handle tasks such as preparing and certifying financial statements, drafting required resolutions and affidavits, and filing the closure application with the Registrar of Companies (RoC).

Voluntary winding up

This method is for solvent companies with assets and liabilities that need to be systematically settled. The process is more complex and involves higher costs.

• Cost: Approximately ₹1,00,000 to ₹1,50,000 or more.
• Services: Professional fees for a liquidator, who manages the entire winding-up process, including asset liquidation, debt settlement, and asset distribution to shareholders.

Compulsory liquidation or IBC

This is the most complex and expensive method, reserved for insolvent companies.

• Cost: Significantly higher, potentially exceeding ₹2,00,000 to ₹5,00,000 or more, depending on the complexity of the case.
• Services: Fees for an Insolvency Professional who manages the detailed liquidation process under regulatory supervision.

Other miscellaneous costs

In addition to professional services, you may incur other expenses during the closure:

• Stamp and notary services: Costs for notarizing legal documents like indemnity bonds and affidavits can range from ₹2,000 to ₹10,000.
• Publication fees: For winding up, public notices must be published in newspapers to invite claims from creditors. These fees can range from ₹10,000 to ₹15,000.
• Bank account closure: Fees related to closing the company's bank accounts, which is a mandatory step.
• Regulatory clearance: Fees for obtaining No Objection Certificates (NOCs) or clearing any outstanding liabilities with departments like Income Tax or GST.
• Legal costs: If the closure involves legal disputes, you may face additional legal fees.

Documents for download

For your convenience, we have prepared a package of document templates to help you with the closure process.

• Download: Company Closure Checklist [PDF]
  • A step-by-step checklist covering all necessary actions for closing a company via strike-off.
• Download: Board Resolution for Strike-Off [DOCX]
  • An editable template for the board resolution required to initiate the company's strike-off.
• Download: Indemnity Bond and Affidavit [PDF]
  • Templates for the indemnity bond and affidavit required by the RoC for closure.
• Download: Sample Public Notice for Winding Up [PDF]
  • A template for the newspaper advertisement required during a voluntary winding-up process.