Which laws govern closing down a start-up business?
The applicable law will depend on the nature of the start-up. If incorporated as a company, it will be governed by the Companies Act, 2013. If set up as a limited liability partnership (LLP), it will be covered by the LLP Act, 2008.
The definition of start-up provided by the Ministry of Commerce includes only a company and LLP, not a sole proprietorship firm. There are two primary reasons for shutting down a start-up. Either it has not been able to generate the business it hoped for and is not able to secure