How to Close a Existing Non working Private Limited Company ? Costs ?

How to Close a Existing Non working Private Limited Company ? Costs ?

How to Close a Existing Non working Private Limited Company ? Costs ?

Cost of Closing a Pvt Ltd company vs LLP,  ?

Want to Close down a new Company or LLP ? What are the Advantages and Disadvantages ?

Query in your mind ? What to do ?

So, You have thought of a Closing down a non working company due to any reason ? .OK

Advantage and Disadvantage

Advantage and Disadvantage

What  are the Advantages… ?

Closing of liabilities….hmmm…. anything else ?

What are the Disadvantages ? Did you think about it ? 

You must read this before you go ahead

First, Closing down the company ?

What if, the business idea does not work ?

or, What if you and your new friend / Partner cannot work together due to any reason ?

or, What will happen if you are in LOSSES ?  and there is no Hope of revival in near future ?

Answer to the first set of three questions is …

the Company can be given birth in a week / month… but takes many months/even a year to close down.

Source :

This site says.. every year Tens of Thousands of Companies and LLP are made but … this site and we ourselves know that average 70% don’t start business or don’t continue beyond the first 2 years …. So you are not alone…. 


source 2 :

Second, Big Risk of being DisQualified and removed from your own Main company ?

What if, the “non working”  Company / LLP is not able to file its Annual return ? due to any reason ?

Effect : You will stand Disqualified from all your other companies also .. including your running “existing businesses”.


Want evidence ? see this …

Source :

  • Where he/she is the director of a company that has either –
  • a. Failed to file the annual returns for 3 years running
  • b. Failed to pay interest on/repay the deposits for over a year
  • c. Failed to pay any dividend that was declared for over a year
  • d. Failed to redeem debentures or pay interest on debentures for over a year

In short, if your this new Company does not file its return due to mis-up between the partners… you become disqualified to remain director of your main business also.


riskCan you afford this Risk ?

What is the Probability.. that new business will not work ? ….

you might say it will work 100%… but market past shows that only 30% work and 70% do not work. So, better get somebody else in the family to become the Director till the company becomes of a significance and can be seen as a working company.

Can the procedure to close the LLP or Company be done with single party signatures ?

Of Course not. Both Parties , or say 100% of the Partners  , Directors, and shareholders must sign  the MOU for “closure”.

So, you are in a problem. Yes.

Sad part is that if both parties are not on talking terms,… and other party has nothing to lose…

Reasons ? maybe he has got a job somewhere, or he has left India for job outside India…. or ….. he does not want to pay for the LLP / Company closing expenses……he just wants to tease you …. 

in this case, you are saddled for life.

Daily rate penalty starts in all laws : GST, TDS, ROC, and Income Tax.

Better Solution : Sell the company to somebody else..

Get whatever you can… in case there are any assets.

if assets are NIL, or it is a zero asset company, then, Sell at NAV .

it could be Even at Rs 0.00 …

At least be free of the closure costs, ROC closure costs are significant… GST closure costs are also significant, Income tax closure efforts and costs are also significant

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Proprietorship vs Partnership vs Pvt Ltd vs LLP, what to do. ? Advatanges vs Disadvantages, what to make for a Startup / New Venture ? Hope this comparison was well taken in positive light.

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