Profitable growth: Strategies for sustainable business success 2

• The expiry of license/ duration stated in the articles of incorporation/ association or the accomplishment of the objective for which the entity was set up
• The loss of all or a major portion of the entity’s assets
• Mergers
• Shareholders’ approval that the entity’s term of existence can be brought to an end as per the stipulated majority, etc.
• Liquidation on a voluntary basis
• Liquidation on a compulsory or legal basis

The person who is in charge of conducting the liquidation process is termed the liquidator. The court or shareholders of an entity appoint a liquidator and it is dependent on the type of liquidation as well. Immediately after being appointed, the liquidator will provide a formal letter of acceptance. They will write a statement of affairs and a liquidator’s report once all of their responsibilities have been performed, which are required to perform the liquidation procedure.

License cancellation is one of the primary steps in the liquidation process, and the formalities differ based on the form of company. In the case of establishments and sole proprietorships, you will have to apply for cancellation through DED. Also, clearances need to be acquired from the below-mentioned departments-