The simplified insolvency program is also known as SIP and it was announced by the ministry law on 5th October 2021. But it comes into force by 29th January 2021, it is intended to apply to micro-companies that are seeking to restructure their debts. If you are also running any business then you must have to learn about SIP as it will help you a lot in the future whenever you take any business loan. If you want to know about the simplified insolvency programme then you must have to visit our site or use our customer support service. They will explain to you each and everything in a very detailed manner so that you can also think out of the box for your business.
These are few major points you must have to know about SIP:
- If you want to be eligible for the simplified insolvency programme then make sure that your company is not involved in the ongoing restructuring or winding-up process.
- The SIP is also a temporary program and implemented to deal with the fallout of COVID-19. It means to sit alongside the existing insolvency regime under the IRDA where the statutory process is better suited to companies with substantial assets. The SIP is aimed at providing solutions for small companies is last for 6 months from 28th January 2021 to 28th July 2021.
- The SIP consists of two components, SDRP and SWUP and both lead to the dissolution of the company.
- The SWUP is a simplified alternative to the usual voluntary winding-up process.
Apart from all the above points if you have any kind of doubt then you must have to discuss with our professionals. You will love talking to them as they know how to handle the debt of the business and a lot more things.