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 has 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 assets of the company are sold, and the proceedings collected are used to discharge the liabilities on a priority basis. The winding-up of a company may either be a compulsory winding up by the tribunal, a voluntary winding up by its members or creditors, or subject to the supervision of the court.