Liquidation of a legal entity
Company liquidation is the process of closing a legal entity, which can occur for various reasons, including lack of profit, owner’s decision, cessation of activity, or non-compliance with legislation.
What is liquidation of companies?
The purpose of liquidation is to complete the company’s business activity, settle its financial obligations, distribute its assets and liabilities among creditors and members, and then remove it from the state register.
What are the types of company liquidation?
There are two main types of company liquidation:
This is a process in which a company decides to liquidate voluntarily. This can happen for various reasons, such as a lack of financial resources, an unsuccessful business, or the decision of the owners. Engaging a liquidation company can streamline the dissolution, allowing the business to close its operations with clarity and precision.
This is a process in which a court or government decision liquidates a company. This can occur due to violations of the law or failure to pay taxes.
Steps for elimination
What are the steps to liquidate a company?
The process of liquidating a company can be complex and requires many steps. Here are some of them:
When a company faces the significant step of liquidation, a collective decision must be made. Often, this decision is spearheaded by the director in consultation with the shareholders, ensuring that the best interests of the company are at the forefront. Once this decision is ratified, the next crucial move is to appoint a responsible individual, typically chosen based on their expertise and reliability, to manage and execute the liquidation process.
Appointment of a liquidator
The company must create a liquidator that will manage the liquidation process and distribute assets and liabilities.
Preparation of documents
The company must prepare the necessary documents for liquidation, including a protocol on the decision to liquidate and a statement to the tax service.
Notification of creditors
The company must notify all creditors of the liquidation process and request their claims for debts and arrears.
Assessment of assets and liabilities
The liquidator must assess the value of the company’s assets and liabilities, including property, money, and debts.
Distribution of assets and liabilities
After assessing the assets and liabilities, the liquidation commission must distribute them among creditors and members.
The company must issue documents for liquidation, including an application to the tax service, an application for withdrawal from the register of legal entities, and complete all business transactions.
Removal from the state register
As a culmination of the liquidation process for a limited company, there is a formal procedure known as ‘striking off’. This means the company will be formally dissolved, ensuring it no longer holds any legal standing. Subsequently, the company must be removed from the state register, marking the final step and officially completing the liquidation process.
How can a company
be helped during
the liquidation process?
be helped during
the liquidation process?
Liquidating a company can be an intricate and protracted journey, often laden with potential pitfalls and legal intricacies. Given these complexities, a multitude of firms opt to enlist the expertise of professionals. Our adept team at Lawtter Solutions offers a suite of business liquidation services to guide and support businesses through every phase of the liquidation process.
Company liquidation is a serious and complex process that requires a lot of time and resources. Our company offers a full range of services for company liquidation, starting from consultations and document preparation, to the supervision of the liquidation process and representation of the company’s interests. Our experts have extensive experience working with companies of all sizes and industries, and we are ready to help your company successfully navigate the liquidation process. If you have any questions or would like to discuss our company liquidation services, please contact us for a consultation.
Liquidation of companies in the region