Take decision in the shareholders meeting
To close a company with Form STK-2 a meeting of the shareholders of the company must be called in order to decide about the closure with at least 75% voting rights.
Surrender of Registration & Licenses
If the company had registered under GST or obtained licenses under any government department, the same need to be surrendered before an application for closure is filed by the company.
Bank A/c Closure & Prepare Financial Statement
The bank accounts of the company must be closed, and a certificate from the banker is needed. Prepare a financial statement with Nil Assets and Liabilities, A Practicing CA or Auditor shall certify it.
Affidavit & Indemnity Bond of All Director
All directors and shareholders have to swear an affidavit that all information and documents being filed is true and correct and an indemnity bond that if any liability comes up the directors shall pay in person.
Filing of STK-2 Form
Check that the company has filed all pending ITR & ROC Return to the ROC, the application for closure of the company filed online with a digital signature in Form STK-2 with the government fee of Rs. 10,000/-
Companies not Commenced Operations
Under section 248(1)(a), only that company can be closed which could not commence its business operations within one year of its incorporation. In other words, there is absolutely no transaction in the company.
Inactive Since Past Two Years
Under section 248(1)(c), a company can be closed even when the company started its business but has been inoperative for the past two financial years.
There is Nil Assets or Liabilities
There is no assets or liabilities in the company. All bank A/c must be closed, and the financial statements must be certified by a Chartered Accountant.
No Litigation Pending
There should not be any litigation or tax assessment pending for the company with the state government or central government or their agencies.