Alternative express liquidation. Advantages and disadvantages.
The so-called alternative liquidation is the transfer of the corporate rights of an enterprise (primarily LLC or PE) to third parties, followed by the appointment of a new head of the enterprise, and a change of location.
This service has gained great popularity in Ukraine, which is primarily due to the technical simplicity of its implementation, as well as the relatively low cost of the procedure. Indeed, this way of saying goodbye to the problems accumulated during the operation of the enterprise seems very attractive, and not without reason. However, in order not to get much bigger problems instead of solving them, it is necessary to approach this procedure thoroughly and deliberately, because business does not forgive frivolity at all, and the liquidation of a legal entity is no less important business tool than its creation. Therefore, the stage of choosing a law firm to accompany this procedure is the key to successfully resolving the issue. When making this choice, the following points should be considered:
Service cost
Everyone knows the reasons for the excessive cheapness of cheese, and the field of legal services is no exception to this rule. A well-executed procedure cannot cost a penny. You need to understand that only official notary and registration fees, in the implementation of this transaction, can reach 5-6 thousand hryvnia. Therefore, when you see an offer of this service for a total price within a similar amount, this is a serious reason to ask yourself a question about the quality of the service offered and, accordingly, about its consequences, and indeed about the reality of implementation.
Signers
This issue is one of the most important, because, if the enterprise has problems, the tax authorities may attempt to communicate with the signatories. Having received a thousand and a half hryvnias for coming to the notary, “zits-chairmen” and “pounds”, as signatories, is a potential serious problem, the solution of which, in the end, will fall on the shoulders of the client. It will cost much more than several thousand hryvnias saved on “cheap” services.
The optimal solution, in this case, would be to sign the documentation, as a new owner or on his behalf, legal agency specialists. Their experience in dealing with law enforcement agencies, adherence to attorney-client secrecy and the law “On Advocacy and Advocacy” will protect the client from possible problems associated with the “express liquidation” of a legal entity. Of course, such services will cost more, but they guarantee the client a restful sleep.
New owners and officials
In some complex cases, it is recommended to abandon the practice of buying out legal entities by residents of Ukraine. In such cases, residents of non-CIS countries can become new owners and managers. So, the practice is to buy out the corporate rights of a troubled legal entity and the subsequent appointment of a new head by a foreign company registered in an offshore zone. This method is one of the most reliable in order to part with the enterprise and forget about its problems.
Further fate of the enterprise
Another important point to which attention should be paid is the subsequent fate of the legal entity transferred in the process of “express liquidation”. One of the reasons for the low cost of the proposed alternative liquidation service may be the use, in the future, of the acquired legal entity in some gray and black schemes. A conscientious and high-quality service should guarantee the absence of any follow-up action.
© Legal agency “AKTIV”, 2020.
