Business closure, winding-up, or liquidation is the process of formally shutting down a company’s operations and realizing its assets to settle its debts and obligations. It is typically initiated when a business is no longer viable, financially insolvent, or when its owners decide to cease operations.

This process involves appointing a liquidator, who oversees the sale of company assets, repayment of creditors, and distribution of any remaining funds to shareholders. Legal and regulatory compliance is paramount during this process.

Business closure may be voluntary or involuntary, and it marks the end of a company’s existence. It can be a complex and time-consuming process, requiring adherence to specific laws and regulations to ensure a fair and equitable resolution for all stakeholders.