Winding up of Company

Unregistered Companies : (583)

In simple words, an unregistered company, is a company which is not registered or covered under provisions of companies Act. 1956 ( 582)

• An unregistered company, cannot be wound up voluntarily, or, subject to super vision of court.
• However, the circumstances, in which unregistered company may be wound up, are as follows :
1. If the company, is dissolved, or has ceased to carry on business, or is carrying on business only for the purposes of winding up, it's affairs,
2. If the company is unable to pay it's debt
3. If the court is of opinion, that it is just and equitable, that the company, should be wound up.

A creditor, contributory, or company itself by filing a petition, or any person authorized by central government may institute winding up proceedings.

In respect to other aspects, the same provisions and procedure shall follow, as in winding up of registered company.

A foreign company, carrying on business in India, which has been dissolved , may be wound up, as unregistered company.

This Article has been shared by Ketan Sardana. He can be reached at ketanhsardana@gmail.com