IBBI (Voluntary Liquidation Process) Regulations, 2017

Solvency declaration, member approval and the faster timeline for a solvent company choosing to wind up.

Solvency declaration

A majority of directors must make a declaration of solvency verified by an affidavit, accompanied by audited financial statements and a valuation report, confirming the company can pay its debts in full from asset realisation within a specified period (not exceeding 1 year from commencement of liquidation).

Approval route

Within 4 weeks of the solvency declaration, members pass a special resolution (or, if the company owes debt, creditors representing two-thirds in value approve) appointing an insolvency professional as liquidator.

Faster closure

Since there is no creditor dispute driving the process, voluntary liquidation typically closes faster than insolvency-driven liquidation — final dissolution follows an NCLT order after the liquidator's final report, closing bank accounts and filing with the Registrar of Companies.

Educational summary of the Insolvency and Bankruptcy Code, 2016, its Regulations and case law as understood at review date 2026-07-18. Not a substitute for the official Code/Regulations text, current NCLT/NCLAT/Supreme Court rulings, or professional advice on a specific matter.

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