NRIs in UAE: How to voluntarily liquidate a private company in India

Question: My family in India has a private limited company which has built up substantial reserves.  The family members want to take their share of the reserves and they do not wish to continue with business operations.  Liquidation is therefore one of the main options. Can this be done expeditiously?

ANSWER: Section 59 of the Insolvency & Bankruptcy Code (IBC) permits voluntary liquidation whereby solvent companies like yours can sell assets and distribute capital to shareholders together with the built up surpluses.  Under this legal provision, shareholders are able to wind up the company through a supervised process thereby creating a credible record of a legally compliant exit. This brings funds back into the hands of shareholders in an open and transparent manner and avoids further statutory compliance issues which have to be adhered to while the company is in existence. Since the inception of the IBC, more than 2,400 companies have initiated the voluntary liquidation process, of which final liquidation has been completed in 1,867 cases upto September30, 2025.

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Before enactment of the IBC, liquidation of a company was a long and cumbersome process which lasted for several years.  IBC has brought about a sea change and ensured that the winding up process is expeditiously completed. Voluntary liquidation is increasingly followed by foreign companies which have set up subsidiaries in India and where, upon completion of the project, the need for continuance of the subsidiary does not subsist. This is also done in the case of Special Purpose Vehicles set up in the form of companies pertaining to a single construction or realestate project.  The IBC has therefore been an enabler for Indian and foreign promoters to establish specific businesses in India and wind them up expeditiously once the mission is accomplished.

Question: The Make-in-India objective of the Indian government was rolled out about three years ago.  Has it made any impact in boosting manufacturing in India and creating more jobs?

ANSWER: The Make-in-India story has been most successful in giving a boost to the electronics industry. According to the India Cellular & Electronics Association (ICEA), 1.33 million jobs have been created over the past five years which was propelled by the production-linked incentive scheme.  Of the 1.33 million jobs, around 400,000 are estimated to be direct jobs in new factories which provide self-contained international skilling modules. Another 930,000 indirect jobs have been created across ancillary industries, logistics and services sector. Resounding success has been achieved in the production of mobile phones which has enabled the country to become the world’s second largest mobile phone exporter.

More than 70 per cent of the new jobs created gave opportunities to first-timers and women. The factories not only provide a safe workplace but have set up dedicated women’s housing with transport facilities. This has incentivized women to take up jobs in the electronics sector. Many mobile phone manufacturers have shifted a significant portion of manufacturing to India from China and other countries. According to the ICEA, mobile phone manufacturing companies paid an estimated Rs.250 billion as remuneration to employees. The value of mobile phone production has surged to Rs5.45 trillion during the financial year 2024-25. During this year, export of such phones crossed the Rs.2 trillion mark. It is expected that in 2026 electronics manufacturing will scale new heights, deepen domestic value addition and generate millions of additional jobs.

Question: With the unprecedented AI boom, are enough educational institutions being set up to meet the growing demand for reskilling and upskilling?  Many NRI professionals currently based in the Gulf would like to take advantage of them.

ANSWER: Edtech platforms in India have grown substantially in the last few years and they are witnessing an unprecedented surge in enrolments for AI courses, particularly for agentic AI, cyber security, etc. Both global and Indian organisations are integrating AI’s capabilities into their operations, product development and customer experiences.  The demand for Indian AI talent is projected to grow from 600,000 at present to more than 1.25 million by the end of next year. Agentic AI programmes are among the fastest growing with enrolments which are nearly three times higher than other technology offerings.

Foundational GenAI literacy programmes on the B2C side are being expanded integrating AI modules across high demand tracts such as data, cloud and digital marketing. While young professionals form a large chunk of the demand, there is also a steady shift towards applied and advanced learning. This clearly indicates that professionals are increasingly moving from AI awareness to deeper skill building.  Enrolment has also increased from professionals with five to fifteen years of experience who recognise that traditional engineering skills are no longer sufficient in an AI driven world and want to transition into specialized high value roles.  Therefore, not only are more courses available in India, but expanded learning options are available with university partnerships. 

The writer is a practising lawyer, specialising in corporate and fiscal laws of India.