๐ The Step-by-Step Process of Winding Up a Startup ๐
What is Winding Up?
Winding up is the procedure of bringing a company’s operations to an end, liquidating its assets, paying off debts, and distributing any remaining assets to its members as per the companyโs Articles.
Voluntary Winding Up Process:
1. Filing a Petition: Submit a winding up petition to the NCLT in Form WIN-1 or WIN-2, verified by an affidavit in Form WIN-3.
2. Statement of Affairs: Prepare the statement of affairs in Form WIN-4, updated within 30 days before filing, along with an affidavit of concurrence in Form WIN-5.
3. Tribunal Hearing: The petition is then posted before the Tribunal for admission, where a hearing date is set.
4. Advertisement: Upon hearing, the Tribunal will direct the advertisement of the winding-up notice. The petitioner bears the advertisement costs.
5. Notification: Serve a copy of the petition to every company contributory within 24 hours of the notice.
6. Public Advertisement: Advertise the petition notice in widely circulated English and vernacular newspapers within 14 days of receiving the hearing date, using Form WIN-6.
Winding up a startup can be a daunting process, but with the right steps, it can be managed efficiently.
