Business Standard

FAQs: Why closing down can be tougher than starting up

The Stayzilla episode raises questions over the regulations around closure of a business

Sudipto Dey 

Which laws govern closing down a start-up business? The applicable law will depend on the nature of the start-up. If incorporated as a company, it will be governed by the Companies Act, 2013. If set up as a limited liability partnership (LLP), it will be covered by the LLP Act, 2008.  The definition of start-up provided by the Ministry of Commerce includes only a company and LLP, not a sole proprietorship firm. There are two primary reasons for shutting down a start-up. Either it has not been able to generate the business it hoped for and is not able to secure funding ...

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FAQs: Why closing down can be tougher than starting up

The Stayzilla episode raises questions over the regulations around closure of a business

The Stayzilla episode raises questions over the regulations around closure of a business Which laws govern closing down a start-up business? The applicable law will depend on the nature of the start-up. If incorporated as a company, it will be governed by the Companies Act, 2013. If set up as a limited liability partnership (LLP), it will be covered by the LLP Act, 2008.  The definition of start-up provided by the Ministry of Commerce includes only a company and LLP, not a sole proprietorship firm. There are two primary reasons for shutting down a start-up. Either it has not been able to generate the business it hoped for and is not able to secure funding ... image
Business Standard
177 22

FAQs: Why closing down can be tougher than starting up

The Stayzilla episode raises questions over the regulations around closure of a business

Which laws govern closing down a start-up business? The applicable law will depend on the nature of the start-up. If incorporated as a company, it will be governed by the Companies Act, 2013. If set up as a limited liability partnership (LLP), it will be covered by the LLP Act, 2008.  The definition of start-up provided by the Ministry of Commerce includes only a company and LLP, not a sole proprietorship firm. There are two primary reasons for shutting down a start-up. Either it has not been able to generate the business it hoped for and is not able to secure funding ...

image
Business Standard
177 22