Shutting down small firms now easier: MCA's new winding-up rules

New Delhi, Feb 24 (KNN) The Ministry of Corporate Affairs (MCA) recently notified the rules for shutting up of companies, making it easier for smaller firms to close down businesses without taking approval.

The rules have provided summary procedures for liquidation of companies with asset size of Rs. 1 crore and which have not accepted deposits exceeding Rs. 25 lakh and turnover less than Rs. 50 crore and total loan under Rs. 25 lakh.

The central government will provide the required approvals to such companies for winding up instead of the tribunal.

A per the rules, “wherever the word Tribunal is mentioned, it shall be read as Central Government and with further directions issued by the Central Government as may be necessary, from time to time”. (KNN/SS)

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