Thinking of putting a full stop to your business, let us lead you to your way out
Striking off by winding up
If you are not continuing your business anymore and you do not have an asset or liabilities, you can get your name struck off from the register of the Registrar leading to a fast track exit and closure of business. In case your startup did not jump the stairs of success, you could get the name removed from the corporate registrar. Further, in case you do not qualify under fast track exit mechanism, you could always opt for voluntary liquidation. A startup can close its business within 90 days from the date of application of winding up. This process is likely to be a lot more inexpensive than the traditional route of winding up the business given the fact that latter requires shareholder meetings, creditor meetings, appointment of a liquidator etc leading to expensive process. However this exit process is subject to the asset and liabilities held by the startup.
In case you are looking to sell your business to another entity, the buyer entity would conduct a due diligence of your company at different parameters. Due diligence is independent process of identification and verification of information for a better understanding of the company’s internal information relating to its business. Further conduction of due diligence would include but not be limited to the evaluation of company’s operations, management, finances, accounting, legal matters etc. Further precise documentations need to be completed between the parties.