Why Company Closure Is Important
If your company is inactive, not making profits, or you plan to start a new venture, it’s essential to officially close it. Failing to do so can result in:
Penalties for Non-Compliance
Inactive companies that aren’t officially closed may face fines and penalties from OCR and IRD for failing to meet legal duties.
Accumulated Tax Obligations
Unclosed companies continue to generate tax liabilities over time, resulting in financial burdens and difficulties with IRD clearance.
Blacklisting of Directors
Directors of non-closed companies risk being blacklisted by regulatory bodies, preventing them from opening or managing new companies.
Legal Complications in Future Registrations
Incomplete company closures can cause legal obstacles and delays when you try to register or operate a new business.
Our Company Closure Services Include
We handle every step from start to finish.
1. Document Review & Consultation
We begin with a detailed review of your company’s legal and financial status and guide you through the entire closure process.
2. Preparation of Required Documents
Our team prepares all required forms, applications, and board resolutions for submission to the OCR and IRD.
3. Submission to OCR
Once documents and tax clearance are ready, we submit your application for official deregistration of the company as per the Companies Act, 2063.
4. Final Compliance Support
We ensure all legal obligations are fully settled and provide confirmation once your company is officially closed.
Documents Required for Company Closure
| Document | Purpose |
|---|---|
| Application for Company Closure | Official request to dissolve the company with the Office of Company Registrar (OCR). |
| Board Resolution for Company Dissolution | Confirms that shareholders/directors have agreed to close the company. |
| Tax Clearance Certificate from IRD | Proves that all tax liabilities have been cleared with the Inland Revenue Department. |
| Latest Audit Report and Financial Statement | Shows the company’s final financial position before closure. |
| Company Registration Certificate and PAN/VAT Certificate | Required for identification and verification of the company. |
| Copy of Memorandum & Articles of Association (MoA & AoA) | Confirms company structure, objectives, and internal rules. |
| Citizenship Certificate of Shareholders/Directors | Verifies the identity of the individuals associated with the company. |