What is closure of company under Companies Act, 2013?
The closure of a company under the Companies Act, 2013, refers to the formal process of dissolving a company, ending its legal existence. This can be done through voluntary winding up, where shareholders agree to close the company if it’s solvent, or compulsory winding up by the National Company Law Tribunal (NCLT) due to reasons like insolvency, fraud, or severe non-compliance. Companies with no assets or liabilities may also use the Fast Track Exit (FTE) scheme, where a strike-off application is filed with the Registrar of Companies. Upon successful closure, the company’s name is removed from the register, freeing it from statutory obligations. This process ensures legal compliance, preventing future liabilities for directors and stakeholders.
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