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The Information Commissioner's Office (ICO), which has been looking into the British firm's handling of data harvested from millions of Facebook users, and raided its offices in March, said the inquiry would continue.

Founded in 2013, as a subsidiary of SCL Group, a consultancy, the company worked on political campaigns with a tech-focused approach, claiming they had a large hand in the success of Donald Trump's election to the presidency of the United States in 2016.

"It's crucial that Facebook and Twitter and any entity that collects data, protects it", he said.

The Indian government will continue with its enquiry into the Cambridge Analytica data leak issue, irrespective of the British firm announcing closure of business, senior IT Ministry officials said on Thursday.

"While this decision was extremely painful for Cambridge Analytica's leaders, they recognize that it is all the more hard for the Company's dedicated employees who learned today that they likely would be losing their jobs as a result of the damage caused to the business by the unfairly negative media coverage", the statement continued.

Denham said the prime allegation against Cambridge Analytica is that it acquired personal data in an unauthorized way, adding that the data provisions act requires services like Facebook to have strong safeguards against misuse of data.

Cambridge Analytica was born of as an American offshoot of London-based SCL Group, whose affiliates had worked in campaigns around the world, including Kenya, Nigeria and India.

"Cambridge Analytica and SCL group can not be allowed to delete their data history by closing", Collins told the Guardian.

Are Cambridge Analytica and its parent SCL Elections as dead as they seem?

And the contact address given for Rebekah Mercer is the same location as Cambridge Analytica's NY operation. The last date for the two companies to respond is May 10.

Since the discovery of the data-sharing lapse, Facebook CEO Mark Zuckerberg has promised to tighten security protocol and crack down on data-mining companies who access the vast social network. "They are party to very serious investigations and those investigations can not be impeded by the closure of these companies", said MP Damian Collins.

In 2013 Dr. Aleksandr Kogan, a research associate at the Department of Psychology of Cambridge University built a 3rd-party profiling application to use for his research.

CA was also rocked by undercover recordings appearing to show senior figures in the company boasting about underhand tactics that could be used to entrap opposition politicians, such as bribery and sex.

The company at the centre of Facebook Inc.'s recent privacy scandal is shutting down. According to business filings in the UK, Cambridge Analytica funder Rebekah Mercer and her sister Jennifer are listed as Emerdata directors, as are former acting chief executive officers Alexander Tayler and Julian Wheatland.