Liquidations

A company can be closed in the following ways:

• Strike off a company under Section 248 of the Companies Act, 2013: Any defunct company wanting to strike off its name from the Register of Companies can apply by filing Form STK-2. Similarly, the ROC also has the power to strike off any defunct company after being satisfied with the need to strike it off and having reasonable cause
• Winding up of a company is a process by which the business of the company is wound up, and the company ceases to exist. All the company assets are sold, and the proceeds are used to discharge liabilities in priority order. The winding-up of a company may be a compulsory winding up by the tribunal, a voluntary a winding up by its members or creditors, or subject to the supervision of the court.