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.

Company liquidation

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:

Voluntary 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.

Compulsory liquidation

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.

What are the steps to liquidate a company?

Decision-making

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.

Paperwork

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.

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How can a company 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.

Consultation on company liquidation

Should a company find itself in a precarious financial position, understanding insolvency becomes paramount. Insolvency, a state where a company becomes insolvent and cannot meet its debt obligations, often leads businesses to consider liquidation. We are equipped to provide consultations and recommendations on navigating the complexities of the liquidation process, especially in cases of insolvency. Our expertise covers a range of areas, including the necessary documents and steps to ensure a smooth and compliant transition.

Document preparation

We can assist the company in preparing the necessary documents for liquidation, including minutes of the decision to liquidate, statements to the tax office, and others.

Management of the liquidation process

We can provide services for managing the process of liquidating the company, including the distribution of assets and liabilities, notifying creditors, and removal from the state registry.

Assistance in the distribution of assets and liabilities

We can help the company in the proper distribution of assets and liabilities, taking into account the requirements of creditors and stakeholders.

Preparation of documents for deregistration

We can help the company prepare the necessary documents for deregistration, including an application for the withdrawal of legal entities from the state registry and other documents.

Taxation consultations

We can provide the company with consultations on taxation in the context of liquidation, including advice on reducing tax liabilities.

Support during the liquidation process

Our professionals can accompany the liquidation process of the company, assisting in resolving any issues and problems that may arise.

Preparation of financial statements

We can help the company prepare the financial statements necessary for liquidation, including balance sheets and profit and loss reports.

Development of a liquidation strategy

Our experts can help the company develop a liquidation strategy, identifying the optimal plan of action and deadlines for execution.

Representation of the company's interests

We can represent the company's interests during the liquidation process, including negotiations with creditors and other interested parties.

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.

Kateryna Ozerova

Managing Partner, Co-Founder

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