A Company is having a paid-up Capital of ₹50 Lakhs and a Turnover of ₹1 Crore. The Company does not have any loans and outstanding deposits. The Board of Directors of the Company have decided not to carry on further busi

With a view to systemize the procedure of winding up of a Company under the Companies Act, the Ministry of Corporate Affairs (MCA) vide notifications dated 24th January 2020, had notified the Companies (Winding Up) Rules, 2020. The Rules are applicable to companies going into winding up for the circumstances mentioned under Section 271 as well as "Summary procedure for liquidation under Section 361" of the Act. The Rules comprise of 191 rules and 95 forms and shall become applicable from 1st April 2020. It allows the following companies to wind up their business by making an application to Central Government without approaching National Company Law Tribunal (NCLT): Companies accepting deposit and having total deposits: Upto ₹25 Lacs Companies having total outstanding loan including secured loan: Upto ₹50 Lacs Companies having total turnover: Upto ₹50 Crore Companies with Paid up capital: Upto ₹1 crore In the given case since, the Company Capital of ₹50 Lakh and Turnover of ₹1 Crore can wound up the Company without going to NCLT as per the new amendment. Alternatively, a corporate person, who intends to liquidate itself voluntarily and has not committed any default, may initiate voluntary liquidation proceedings under Section 59, Chapter V of Part II of the Insolvency & Bankruptcy Code.