Want to shut down your business? Here's a quick 9-step guide

Want to shut down your business? Here's a quick 9-step guide

Unless you have been mandated to shut the business, here’s how you can close the business if it is likely to become unviable ahead:

Unless you have been mandated to shut the business, here’s how you can close the business if it is likely to become unviable ahead:

A resolution has to be passed by the company in a general board meeting seeking consent from the majority of its directors.

A resolution has to be passed by the company in a general board meeting seeking consent from the majority of its directors.

A special resolution seeking approval of three-fourths of its shareholders has to be passed.

A special resolution seeking approval of three-fourths of its shareholders has to be passed.

Consent is needed from trade creditors that they don’t have any responsibility if the company is closed.

Consent is needed from trade creditors that they don’t have any responsibility if the company is closed.

As a private limited company, a Declaration of Solvency has to be prepared and accepted by the trade creditors.

As a private limited company, a Declaration of Solvency has to be prepared and accepted by the trade creditors.

Get a liquidator to implement the procedure to wind up the business and also prepare a report on assets, debts, and properties.

Get a liquidator to implement the procedure to wind up the business and also prepare a report on assets, debts, and properties.

The report has to be shared in the general meeting and a resolution has to be passed to dissolve the company.

The report has to be shared in the general meeting and a resolution has to be passed to dissolve the company.

The liquidator will make an application to the National Company Law Tribunal (NCLT) to dissolve a company.

The liquidator will make an application to the National Company Law Tribunal (NCLT) to dissolve a company.

The tribunal then may pass the dissolution order within 60 days of verifying the documents submitted.

The tribunal then may pass the dissolution order within 60 days of verifying the documents submitted.

After the dissolution, the company should file a copy of this record with the registrar of the company.

After the dissolution, the company should file a copy of this record with the registrar of the company.

Image source: Pexels

Image source: Pexels