What is liquidation of a company? Features of the procedure in 2023

Business is a part of life for everyone. But over time, circumstances arise in which it is necessary to stop working in one direction or another. And then the question arises of how to properly close the enterprise.

One of the forms of completion of the company's work is its liquidation.

Liquidation of an enterprise is a complete cessation of the activity of an enterprise without the possibility of succession.

Grounds for the liquidation of an enterprise

• Founders decisions. That is, the persons who founded the enterprise have the right to terminate its activities through liquidation.
• The court's decision. In this case, there is a forced liquidation of the enterprise on the basis of a court decision.
• Company bankruptcy. One of the most unpleasant procedures also leads to the liquidation of a legal entity.

How does a company liquidate?

Depending on the basis for which the company will be liquidated, the procedure may differ slightly. For example, if liquidation occurs by decision of the founders, then the General Meeting must first be convened. The decision of the General Meeting on the liquidation of the enterprise must be formalized by the Minutes. Also, the General Meeting must approve the liquidation commission.

The decision to liquidate the enterprise must be registered with the state registrar. After that, you should inform the regulatory authorities and creditors about the liquidation of the enterprise.

The next step is the inventory of property and the approval of the liquidation balance sheet of the enterprise, as well as the termination of labor relations with employees, settlements with creditors, etc.

Who carries out the liquidation of the enterprise?

The liquidation of an enterprise is usually carried out by the head of the liquidation commission. After the decision of the General Meeting, he becomes the actual head of the enterprise, who will carry out and sign tax, financial and other reports and submit an application for making an entry on the liquidation of the legal entity in the USR. In most cases, it becomes the manager of the company.

How long does it take to liquidate a company?

It is very difficult to foresee the timing of the liquidation of the enterprise. In any case, the period for creditors to submit their claims to a legal entity terminating its activities cannot be less than two months (part 5 of article 105 of the Civil Code), which establishes a minimum liquidation period. That is, the liquidation period can take from two months, and in some cases it can be delayed even longer.

As noted above, the process of liquidating an enterprise often needs help. Since it is not entirely clear, it becomes where to start and how to end the liquidation process.

When do you need a lawyer to liquidate a legal entity?

• in cases of: liquidation of the enterprise (voluntarily or involuntarily).
• Making a decision to liquidate the state of emergency.
• The need to collect documents and assist in the liquidation of the company.

By contacting the law firm "Prikhodko and Partners", you will receive the best option for solving an exciting issue, as well as liquidating an enterprise quickly and correctly.