Before winding up a company, you need to complete some steps that include:
Holding board meeting:
Any private limited company that wants to close the Company has to hold a board meeting. In this meeting, the directors will declare that they have enquired about the internal affairs and formed an opinion to close the Company. The directors will also make sure that the Company has no debts. If there are any debts, the Company has to pay all the debts by selling the assets. They also have to fix a date, time, and agenda to conduct a general meeting from five weeks of the board meeting.
Issuance of notice:
Then the Company has to issue a notice in writing. It will state the information about a general meeting that proposes the resolution with a suitable explanation
Passing an ordinary resolution:
The Company wishing to wrap up has to pass an ordinary resolution in the general meeting.
Meeting with the creditors:
On the same day, the Company shall conduct a meeting with the creditors. If two-thirds of the creditors pass the resolution to wrap up the Company, the Company can wrap up voluntarily.
Filing a notice with the registrar:
Within ten days of passing the resolution, the Company has to file a notice with the registrar for appointing the liquidator.
Advertisement in the newspaper;
After passing the resolution, the Company has to give notice of the resolution in the official gazette and post an advertisement in the newspaper
Then you have to pass a special resolution to wrap up the books and the papers of the Company. Once resolution is passed, the Company needs to file a copy of account and applications to tribunal for the closure of Company. If the tribunal finds your application satisfactory, they will pass an order of dissolution within sixty days. The liquidator then files a copy of the order to the registrar. After receiving the notice, the registrar will publish a notice that the Company is closed.