Liquidation
Closing a company or LLP in India requires a structured process involving statutory filings, settlement of liabilities, and regulatory sign-off. Hegde Hegde and Associates LLP provides business liquidation services covering the accounting, tax, and documentation aspects of voluntary company liquidations and closures.
Partner reviewedDocumented processBengaluru office
Why Liquidation Compliance Matters
Under the Companies Act 2013 and the Insolvency and Bankruptcy Code 2016, voluntary liquidation of a company follows a defined statutory process, including settlement of liabilities, distribution of remaining assets, and final dissolution filings. LLPs follow a related but distinct process for winding up or striking off under the LLP Act 2008.
An improperly documented closure can leave directors or partners exposed to future liability claims or regulatory queries, even after the entity is formally dissolved. Structured documentation at the time of closure reduces this exposure.
Why Businesses Need This Service
- A dormant or non-operational company or LLP that needs to be formally closed rather than left non-compliant.
- Voluntary company liquidations where shareholders have resolved to wind up operations.
- Businesses seeking a faster, lower-cost closure route through the Fast Track Exit or Strike-Off scheme, where eligible.
- Outstanding statutory filings or liabilities that need to be resolved before closure can proceed.
- Group restructuring involving the closure of one or more non-operational entities.
- A need for accounting and tax closure documentation to support the liquidation process.
Our Approach
- 01
Assessment
Reviewing the entity’s financial position, liabilities, and eligibility for the applicable closure route.
- 02
Planning
Identifying the correct statutory process, whether Strike-Off, voluntary liquidation, or LLP closure.
- 03
Documentation
Preparing statement of accounts, indemnity bonds, and other prescribed filing documents.
- 04
Execution
Settling outstanding liabilities and completing pending statutory filings.
- 05
CA Review
Independent review of closing accounts and supporting documentation.
- 06
Compliance Verification
Confirming all pre-closure filings and clearances are in order.
- 07
Reporting
Filing of the closure application with the Registrar of Companies.
- 08
Continuous Support
Responding to any regulatory queries raised during the closure process.
Scope of Services
- Eligibility assessment for Fast Track Exit / Strike-Off under Section 248 of the Companies Act
- Voluntary liquidation process support under the Companies Act and IBC framework
- LLP winding up and closure filings under the LLP Act 2008
- Preparation of statement of accounts and indemnity bond documentation
- Settlement of pending statutory liabilities, including tax and ROC filings
- Coordination with liquidators or insolvency professionals where formal liquidation is required
- Final tax return filing and closure of statutory registrations (GST, PF, ESI, and others as applicable)
Business Benefits
- A properly documented closure that reduces future liability exposure for directors and partners.
- Faster resolution through the correct closure route matched to the entity’s circumstances.
- Clearance of pending statutory obligations before dissolution.
- Reduced risk of penalties for non-filing on a dormant, non-compliant entity.
- A clean regulatory record supporting any future business ventures by the same promoters.
Why Choose Hegde Hegde and Associates LLP
- Liquidation and closure documentation reviewed by a qualified Chartered Accountant.
- Coordinated closure advisory covering accounting, tax, and company secretarial requirements together.
- Practical guidance on selecting the most suitable closure route for the entity’s specific situation.
- Experience coordinating with insolvency professionals for formal liquidation matters.
- A consistent point of contact through what can be a multi-stage closure process.
Industries We Serve
Our liquidation and closure engagements support dormant startups, group entities being consolidated as part of restructuring, and small and medium enterprises across sectors seeking an orderly exit from a non-operational company or LLP.
Technology & IT services
D2C & e-commerce
Manufacturing
Startups & funded ventures
Professional services
NRI individuals
Healthcare
Real estate
Financial institutions
NGOs & trusts
Hospitality
Education
Our Process
Each stage produces a defined deliverable, and nothing is issued to a client before the Chartered Accountant review stage is complete.
- 01
Discovery
Understanding the entity’s current status and reason for closure.
- 02
Assessment
Reviewing eligibility for the applicable closure route.
- 03
Documentation Review
Preparing statement of accounts and supporting filings.
- 04
Execution
Settling liabilities and completing pending statutory filings.
- 05
CA Review
Independent review before filing.
- 06
Reporting
Filing the closure application with the Registrar of Companies.
- 07
Ongoing Support
Responding to regulatory queries until dissolution is confirmed.
Frequently Asked Questions
The Fast Track Exit scheme, under Section 248 of the Companies Act 2013, allows an eligible defunct company to apply for its name to be struck off the register, provided it meets prescribed conditions relating to inactivity and absence of liabilities.
Generally, outstanding liabilities need to be settled or otherwise addressed before a company can proceed with Strike-Off or voluntary liquidation. Our team assesses this as part of the initial eligibility review.
LLP closure follows a process under the LLP Act 2008 and associated rules, which differs procedurally from company closure under the Companies Act, though both similarly require settlement of liabilities and filing of closure documentation.
Timelines vary based on the closure route and the entity’s compliance history, but voluntary Strike-Off applications generally take several months from filing to final dissolution, subject to regulatory processing time.
Proper documentation at the time of closure, including a clear statement of accounts and settlement of liabilities, helps reduce the risk of future claims, though director liability provisions under the Companies Act should be reviewed for the specific circumstances.
Discuss Your Liquidation or Closure Requirements
Whether you are closing a dormant company, an LLP, or a group entity as part of restructuring, our team is available to discuss your specific requirement.
Content reviewed by CA Ramkumar Hegde, Partner, Hegde Hegde and Associates LLP.