Winding up a company which is inactive or when there is no reason as to why it should exist on the register of the companies at ROC is always the right decision. As continuing with a sick company is always a burden for the stakeholders of the company. No matter, where there is any transaction or not, if the company is active you may be called upon by your CA to meet necessary compliances, of which some are monthly in nature, some is quarterly and some every year.
Hence the companies which you no longer need must be closed to save on the unnecessary cost of Compliance, for freedom from the burden of getting books audited every year and filing of ITR with NIL Particulars. Continuing with a company for no purpose will result in an incremental cost of compliance, and in case the Annual Returns and ITR is not filed then there is always a risk of penalty or additional fee.
The Companies Act, 2013 prescribes certain grounds on which ROC on its own or on an application made by the company in Form STK-2 can strike off the name of the company from the register of companies, which every ROC maintains.
If your company falls under any of the categories listed above then, it can be closed by filing a Form STK-2, where the financial statement of the company need to be attached apart from affidavits and indemnity bond from each director and shareholders of the company. The government filing fee is Rs. 5000 to file the STK-2 Form.
In any other case where the above-mentioned conditions are not fulfilled, then the company can only be closed by making an application before the NCLT (National Company Law Tribunal) under the IBC 2016. The process of NCLT is lengthy and costly which most of the failed startup will find burdensome.