The Ministry of Corporate Affairs (MCA) announced a new set of rules on January 24, 2020 in order to simplify the process of liquidating a business. These rules will come become enforced on April 1, 2020. These rules will enable smaller businesses and firms to wind up their business without taking approval.
The criteria to be covered under these new guidelines for liquidation policies are:
- Paid up capital not exceeding INR 1 crore
- Non acceptance of deposits over INR 25 lakh
- Turnover up to INR 50 crore
- Loan under INR 25 lakh
As per the new rules from the MCA, the Central Government will be the authority to provide approval for business liquidation to companies that meet the criteria above instead of the tribunal. The new guidelines state that the word ‘tribunal’ mentioned at any place in the current procedures should be read as ‘Central Government’ and that the process is to be followed as per the orders of the Central Government.
You can search for companies that meet this criterion of the MCA on The Company Check!
 announced a new set of rules on January 24, 2020 in order to simplify the process of liquidating a business.){kind=link}