When an organization in India decides to discontinue all its functions and dissolve itself for any reason, they have to go through voluntary liquidation under IBC. The voluntary winding up under IBC consists of a well-structured and systematic procedure that helps companies liquidity their assets and distribute them in a just and fair manner amongst the core members of the organization.
However, not every company can opt for voluntary Liquidation under IBC as there are a few terms and conditions that qualify an organization to be eligible for voluntary winding up under IBC. The most essential requirement is that any business willing to go through the process of voluntary winding up of company under ibc is in a no-default situation.
By being in a no-default situation, we mean that the companies don't owe anything to their creditors. Nevertheless, in case of a failure or delay in compensating some debt payments, the only way for the debtor to initiate its liquidation is by declaring insolvency under IBC.
To help you get more in-depth knowledge about how voluntary Liquidation under IBC works, read through these steps or voluntary Liquidation under the IBC checklist that we have compiled for your clarity and better understand the entire process of Voluntary Liquidation of Company.
Consider this voluntary liquidation under the IBC checklist, essential as it can help you create a definite blueprint or guideline to go through the entire process smoothly.
To help you get more clarity, here is the entire process of voluntary liquidation under IBC explained in a few simple steps:
Step 1: Organize Meeting of Directors / Authorized Partners
Step 2: Affirmation of Solvency by Board / Authorized Partners
Step 3: Organize General Meeting of Stockholders / Partners
Step 4: Partnering With an Insolvency Professional as Liquidator
Step 5: Sessions with Registrar of Companies and IBBI
Step 7: Publicly Announcing Voluntary Liquidation Under IBC by Liquidator
Step 8: Creation of an Initial Report by Liquidator
Step 9: Setting Up a Bank Account for Liquidation purpose
Step 10: No-Objection from Tax Authorities
Step 11: Realization of Assets
Step 12: Distribution of Proceeds to Stakeholders
Step 13: Conclusion of Liquidation
Step 14: Creation of an Annual Report – (if liquidation extended beyond 12 months)
Step 15: Final Report by Liquidator
Step 16: Write an Application to NCLT
Step 17: Conservation of records by liquidator
During the process of voluntary liquidation under IBC, the company must be prepared with the following documents:
TRC Corporate Consulting's insolvency services provide you with years of experience and knowledge-based advisory that our financiers and trained consultants have achieved while working with many clients from different industries in the market. You leverage our insolvency and bankruptcy services and collaborate with us as we promise to provide the best results from our extensive expertise. Thus, we assure you that the delivered assistance will be on the basis of in-depth considerations of the various legal compliances and laws.
At TRC Corporate Consulting, we don't just consider you to be a customer. We believe you as our business partner and provide you with exceptional IBC advisory services. Moreover, fulfilling your business necessities are always our topmost priority. You can contact us if you want a further understanding of our services related to the voluntary liquidation under IBC or any other financial advisory service!
Small and medium-sized business owners can face tremendous pressures. Beginning, taking over, or...
01 Nov 2022
What is Technology Consulting? Emerging technologies propel businesses forward by increasing...
20 Sep 2022
Risk exists in all businesses; without risk, rewards are less likely. On the other hand, taking on...
13 Sep 2022
For quite some time, business activity outsourcing has been a popular strategy. In the United...
06 Sep 2022
If you need to speak to us about a general query fill in the form below and we will call you back within the same working days
How can we help?