The Insolvency and Bankruptcy Code (IBC), in effect from 5th August, 2016 has created a single law for insolvency and bankruptcy. The code aims to protect the interests of small investors.

According to the code, there are separate processes for individuals, companies and partnership firms. The process can be initiated by the debtors or creditors. A maximum time limit for resolution of insolvency issues has been set up for corporates and individuals. Under this, companies must complete the resolution process in 180 days, while start-up companies and small companies must complete the process in 90 days.