Many people, who have incorporated companies but are not doing any business for a long period, are thinking of closing down the companies because of the increased compliance and resultant costs involved.
The procedure to close down is dealt with by section 560 of the Companies Act’1956. The sections which deals with the closure of companies under the Companies Act 2013 have not yet been notified therefore the procedure to be followed is that given in section 560 of Companies Act 1956.
MCA has issued General Circular 36/2011 dated 07.06.2011 for closure of company. This is called Fast Track Exit Scheme/Mode.Under the fast track exit scheme the Companies can apply for closure.