Winding up of Company (Voluntary)

Winding up of a company is the stage, where by the company takes its last breath. It is a process by which business of the company is wound up, and the company ceases to exist anymore. All the assets of the company are sold, and the proceedings collected are used to discharge the liabilities on a priority basis

There are three ways, in which a company may be wound up:-

• Winding up by the court


• Voluntary Winding up
  a. Members Voluntary Winding Up
  b. Creditors Voluntary Winding Up


• Winding up subject to supervision of the court

Below are the circumstances in which the company may be wound up
a) When the period fixed for the duration of the company in its articles has expired
b) When an event on the happening of which the company is to be dissolved as per its articles happen
c) The company resolves by special resolution at any general meeting to be voluntary winding up

a) Dissolution is initiated by the court for ending the legal existence of the company
b) Winding up of the company may be voluntary or by the order of the court by appointing an official liquidator to monitor the process of winding up
c) Closure of the company is done voluntarily and is done through the fast track exit scheme

Under the Companies Act, 2013 - the application shall be filed before the tribunal. Tribunal refers National Company Law Tribunal constituted u/s 408 of the said Act

Yes. Section 42 of the Co-operative Societies Act, 1912 deals with winding up provisions

No. The provisions of the Code apply to corporate persons. The term corporate persons as defined u/s 3(7) of the code excludes financial service provider from its ambit. Therefore, financial service providers cannot file for voluntary winding up applications under the code

Any company which is not a Sec 8 company and has been inoperative for more than 1 year from the date of its incorporation can apply for closure of company under FTE Scheme

FTE is a company closure scheme initiated by MCA for easy and faster closure of company

The filing fees for Form FTE is Rs. 5000

Since voluntary winding up provisions under the code are yet to be notified, the applications shall be filed in accordance with the provisions of the Act, 1956 i.e before the High Court