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The Economic Times News

Economy / The Economic Times

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Inc & Out: How voluntary liquidation has become the new game in town

Company promoters are increasingly choosing voluntary liquidation to close unviable businesses. This structured process offers a clean exit, avoiding mounting losses and compliance costs. Since the Insolvency and Bankruptcy Code's inception, many companies have initiated this route. Data shows absence of business activity is the primary reason. This code simplifies business closure, enabling faster exits for solvent companies.

22 Dec 2025 12:39 am