Winding up of business

You have decided to end your business voluntarily. The ending of a business form is called "dissolution". Various reasons could lead to the dissolution of the business, such as bankruptcy, retirement, or change in career direction. When a business entity is no longer doing business, it is very important to follows the legal steps in "winding itself up" as a legal entity.

A Private limited company or LLP is an entity created under authority granted by the government. Many do not realize that business entities that have been filed have statutory requirements even when the company isn't actively engaged in business, but as long as a company is filed with a Registrar office - even if it is not in good standing, it is considered to be in existence.

In the event that you wish to stop fees from being incurred and to legally protect yourself, it is prudent that you formally and legally dissolve your business entity. If you fail to do so, the government could continue to assess fees on your business entity, and in many cases, the principals of the entity could be personally responsible for fees or taxes – or held liable for unforeseen actions against the company.