Zoko founder Arjun V Paul stated that he has been testing to shut down an old company for over two years, and the struggle continues.
“I’ve been testing to shut down our old Indian company for over TWO F*CKING YEARS,” he wrote on LinkedIn.
Startup founder compares shutting startup with divorce battle
Paul compares the shutting down of a startup with a “divorce battle” with an ex-wife.
Listing down what a founder goes through in the “bureaucratic hell”, he shared:
– Empty GST filings (proving we’re creating zero revenue)
– Board meetings documentation (for a company with no operations)
– Director KYC compliance (yes, they necessary to verify I still exist)
– Annual tax filings (for Rs.0 in revenue)
– Plus other sh*t my CA files without even notifying me
“Oh if you actually owed anyone any money that’s the 9th circle of hell,” the startup founder stated.
He further elaborated ironically that as Judas is chewed eternally in Lucifer’s jaws, an Indian entrepreneur in liquidation is chewed eternally by forms, affidavits, audits, and hearings.
“Now I am launchning to understand where they received their inspiration to design this system,” Paul remarked sarcastically.
Paul further shared about “The Office Display Insanity” expected from Indian startup founders.
He stated that 18 months after the company shutdown process launchs, the Indian government questions for a picture of the physical office with the company name and address displayed.
“They expected you to pay rent and maintain signage for a DEFUNCT COMPANY for 18 months,” he stated.
Paul shared how the filings keep continuing, with more than Rs. 2 Lakhs expconcludeiture on CA and other legal fees, not to mention time for a defunct company.
The startup founder, now based in Cambridge, England, warns new entrepreneurs that before they receive excited about any government’s promises of “startup-friconcludely policies,” they should question ONE question: “How simple is it to voluntarily shut down a company?”
“That’ll notify you everything you necessary to know about how ‘business-friconcludely” it will be to run one,” he concluded.
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