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CS Executive · Setting Up of Business, Industrial and Labour Laws · Startups and its Registration

Meera, a founder, asks what 'easy exit' means in the Startup India Action Plan. Which description is correct?

Easy exit means startups can wind up their business within a shortened timeline, targeted at ninety days from applying under the insolvency framework. It does not exempt anyone from taxes, permit closure without informing authorities, or transfer liabilities to the Government.

  1. AAllowing startups to wind up business within a shortened period, such as within ninety days of applying under the insolvency frameworkCorrect
  2. BAutomatic exemption from all taxes after closure
  3. CPermission to close without informing any authority
  4. DTransfer of liabilities to the Government on closure

Explanation

The Action Plan aimed at making winding up easier, with insolvency resolution for startups targeted within a short period of ninety days from the application. It does not remove tax duties, allow closure without notice, or shift liabilities to the Government.

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