Streamlined processes help companies speed up voluntary closures

The working paper by PMEAC highlighted that process or nuts-and-bolts reforms are not systematically researched, documented or taught, but are an important part of a policymaker's toolkit

The time taken to close down a company in accordance with the Companies Act has seen a dramatic reduction from an average of 499 days to only 60 days over the past three years. And the timeline to submit final reports under the Insolvency and Bankruptcy Code (IBC) has come down to 200 days, according to a working paper by the Prime Minister’s Economic Advisory Council (PM-EAC).

 

Until 2021-22, voluntary liquidation, under the Companies Act, would take an average of 499 days. The main obstacles included the time taken by the registrar of companies (RoC) to publish notices of closure