Winding up of a Company
A private limited company is an artificial judicial person which requires various compliances like appointment of Auditor, regular filing of income tax return, annual return filing and more Failing to maintain compliance could result in fines and/or disqualification of the Directors from incorporating another Company. Therefore, if a private limited company become inactive with no transactions then it is best to wind up the Company.
The shareholders at any time can initiate Voluntary winding outstanding dues, in case there are any secured or unsecured creditors or employees on-roll must be settled. Bank accounts of the company must be closed once all dues are settled. any overdue compliance like income tax return or annual filing and surrender the GST registration must be regularised. the winding up application petition can be filed with the Ministry of Corporate Affairs once, all activities are stopped and the registrations are surrendered.