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There are two primary paths to consider based on your circumstances: either closing your business or selling it.

Closing Your Business:

This process, also known as winding up, entails a formal legal procedure. In India, there are two main methods to close a business:

Voluntary Winding Up:

This option is chosen when you decide to cease operations due to factors such as lack of profitability. Here's a breakdown of the process:

Obtain approval from shareholders by passing a resolution by the board of directors.

Appoint a liquidator responsible for managing the company's assets and liabilities.

Settle any outstanding debts with creditors, employees, and governmental entities.

File the requisite paperwork with the Registrar of Companies (ROC).

Strike-off:

This is a quicker option suitable for companies that have been inactive for some time or have not fulfilled tax return obligations. The ROC will issue a notice and provide an opportunity for objections before deregistering the company.

Selling Your Business:

If your business is still operational and holds value, selling it could be an option. Below are the general steps involved:

Business Valuation:

Engage a professional to assess the fair market value of your business accurately.

Find a Buyer:

Utilize business brokers or online platforms to connect with potential purchasers.

Due Diligence:

Prospective buyers will scrutinize your business's financial records and operations.

Negotiate and Close the Deal:

Reach mutually agreeable terms with the buyer regarding price and finalize the sale with legal assistance.

Important Note:

Consulting with a Chartered Accountant and a lawyer specializing in company closure or sales is advisable. They can ensure compliance with all legal obligations and facilitate a smooth process.