Liquidation of enterprises

The liquidation of enterprises is an active tool of conducting modern business activities. During its existence, the enterprise can accumulate baggage of accounts payable, problems in tax and accounting, which are often not compatible with its continued existence.

If, as a result of economic activity, there is a need to urgently liquidate a legal entity, and at the same time there are no problems with the preparation of documents, tax authorities, state bureaucracy, we recommend contacting our Agency. We offer our Clients the most optimal, fast and legal options for the liquidation of enterprises throughout the territory of Ukraine. Depending on the existing situation, the wishes of the Clients, the Agency’s specialists will select the most acceptable method of liquidation of your enterprise.

There are several ways to liquidate enterprises:

Alternative liquidation (change of director and owner, buyout of corporate rights)

Alternative liquidation (express liquidation, redemption)

is the fastest and fairly budget-friendly way to part with the company and the problems accumulated during its operation. In fact, in this case, we are talking about the replacement of company officials. As a rule, the legal address is also subject to replacement. The essence of this service is to break the relationship of the previous manager and owners with the company. After making changes in the state register, the supervisory authorities must address all issues related to the company’s activities to the new manager. These issues include: documentary checks, document extractions, requests for documents and others. From the moment of the change of manager, the person responsible for the activity of the enterprise becomes the new director.

In some cases, the new owner of the enterprise may become a resident of another state, which additionally guarantees the safety of previous officials.

Specialists of our Agency will provide full support for the procedure of alternative liquidation, which will allow the Client to get out of the current situation with minimal loss of time and money.

Read more about alternative liquidation in our blog.

Bankruptcy

The application of this tool is especially relevant in the case of serious debts of the enterprise to counterparties or the budget, as well as in the case of the need to exclude a legal entity from the Unified State Register of Legal Entities.

The Code of Bankruptcy Procedures stipulates the obligation of the owners of the enterprise to apply within a month to the commercial court with a statement to initiate bankruptcy proceedings in the event that meeting the demands of one or more creditors will lead to the impossibility of fulfilling the debtor’s monetary obligations to other creditors in full (threat of insolvency) . The Code provides for the debtor to undergo the following stages of the bankruptcy procedure:

Disposal of property
Rehabilitation
Liquidation procedure

If the purpose of the bankruptcy procedure is the liquidation of a legal entity, the key stage is the liquidation procedure.

It should be noted that the liquidator appointed by the court represents the interests of the enterprise in various instances, being its manager from the moment of his appointment. If the Liquidator appoints an arbitration manager of our Agency, the Client is freed from the need to communicate with tax authorities and other controlling structures. These functions are entrusted to the Liquidator (arbitration administrator). Taking into account the experience of our arbitration managers, as well as the legal and advocacy support of our Agency, contacts with controlling organizations end, as a rule, quite successfully for liquidated enterprises and our Clients.

Ending the liquidation procedure entails the following legal consequences:

the creditor debt of the liquidated enterprise, not repaid due to the insufficiency of the debtor’s property, is considered repaid, as a result of which a corresponding court decision is issued.
Exclusion of a legal entity from the Unified State Register.

Also, it is possible to combine this method with the so-called alternative liquidation. Before starting the bankruptcy procedure, it is possible to change the director and owners of the enterprise. Thus, new officials of the debtor will initiate the initiation of the bankruptcy case.

Liquidation by owner’s decision

Mandatory condition of liquidationtion by the owner’s decision, there is no accounts payable at the enterprise, passing of tax inspection inspections and all extra-budgetary funds. Due to the fact that in connection with the “planned” system of inspections, there is practically no possibility to leave them without serious surcharges and fines, especially due to the fact that the company is being inspected for the last time. In such a situation, the tax inspectorate does not remove the company from the register until the arrears from surcharges and fines are paid, or until tax decisions are canceled as a result of an appeal. In this regard, the liquidation process can drag on for a very long time, or even end in nothing.