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Winding Up of Company
What Is Winding Up?
Liquidation is the liquidation of company assets that are collected and sold to pay off debts incurred. When the company is liquidated, the first debt, expenses and costs are paid off and distributed among the shareholders.
Once the company is liquidated it is formally dissolved and the company ceases to exist.
Liquidation is the legal mechanism for winding up a company and stopping all activities that are carried out. The company ceases to exist after the company is liquidated and the assets are monitored so that the interest of the stakeholder is not hampered.
A Private Limited Company is an artificial juridical person and if the company fails to maintain these compliances, further incorporation of the company requires various compliances leading to fines and penalties or even disqualification from the directors. It is always better to wind up a company that has become inactive or where there are no transactions.
The shareholders of the company can initiate the winding up of the company at any time. All dues need to be settled if any secured or unsecured creditors or employees are on the rolls. It is necessary to close all the bank accounts of the company after paying the dues. The GST registration will also have to be surrendered in the event of the company winding up.
Once all the registrations are surrendered the winding up application petition can be filed with the Ministry of Corporate Affairs.
Types of Company windup
What are the different ways in which a person can wind up a company?
A company can be wound up in two different ways-
- Voluntary winding up of a Company
- Compulsory winding up of a company
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How Company is Different?
Diverse Platforms, Systems & Tools Expertise
Company’s IT specialists are adept at both legacy and new-age platforms, systems and tools. We, thereby, comprehend client requirements easily and swiftly devise tools and strategies to mitigate client problems
Huge Technical Proficiency
Company employs IT professionals with specialties across languages and technologies. We are, therefore, in a constant state of readiness to deploy suitable IT experts to specific client needs
Wide Industry Base
We have clients across a wide range of industries and regions around the globe. This has given us the experience and insights into the unique considerations of different organization, thereby building our best practices compendium
Swift Design & Implementation
At Company, our team of IT specialists are quick in requirement assessment, design and implementation. Backed by adequate tests and comprehensive documentation, we offer a safe net to enterprises, shortening the time-to-operate and optimizing the resources
Our IT specialists are available for round-the-clock support and maintenance services. With Company, you experience no downtime!
Cost-Arbitrage with Cost-Efficiencies
At Company, we follow flexible pricing models that take into consideration client needs and limitations. Our tailor-made pricing enables our clients to effect cost efficiencies with a huge margin. At the same time, our price-points fit in easily with client’s digital transformation budgets
It is always a pleasure to learn that the work we do has positively impacted our clients and that they are happy to share their experiences.
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