Liquidation of the company in Estonia

Liquidation of a company in Estonia is a process that includes several stages and requirements that must be met in order to officially close the company.

In this article, we will look at the main aspects of liquidating a company, including the terms, process, timing and the possibility of closing through a sale and purchase.

Conditions of liquidation of the company

Liquidation of the company can be voluntary or compulsory.

The main reasons that can lead to liquidation include:

• Voluntary decision by the owners: The owners of the company can decide to close the business at their own will.
• Inability to meet obligations: If a company is unable to meet its financial obligations, a decision may be taken to liquidate it.
• Expiry of the company: If the company was formed for a certain period, the expiry of this period may be grounds for its liquidation.
• Court decision: the court may decide to liquidate the company in various circumstances, including violations of the law.

The process of liquidation of the company

The process of liquidation of a company in Estonia includes several main stages:

1. Making a decision on liquidation

The first step is the decision to liquidate the company. This decision must be approved by the general meeting of shareholders or owners of the company.

2. Appointment of liquidator

A liquidator is appointed to carry out the liquidation process, who will be responsible for all legal and financial aspects of closing the company.

3. Public announcement

The liquidator must make a public announcement about the liquidation of the company in the relevant registers. This is necessary so that creditors can present their claims.

4. Solving financial issues

The liquidator collects the company’s assets, settles with creditors and resolves all financial issues. This includes paying taxes, paying wages to employees, and other obligations.

5. Closing bank accounts

After fulfilling all financial obligations, the liquidator closes the bank accounts of the company.

6. Submission of the final report

The liquidator submits the final liquidation report to the Commercial Register. After its approval and passing all checks, the company is officially considered liquidated.

Terms of liquidation

The terms of liquidation of the company may vary depending on the number of assets, liabilities and the complexity of the procedure. On average, the liquidation process can take from several months to a year.

It is important to note that each case is unique and the terms may vary.

Closing the company through sale and purchase

One way to close a company is to sell it.

The procedure for selling a company includes the following steps:

• Search for a buyer

The owners of the company are looking for potential buyers who are interested in acquiring the company. It can be another company or individual.

If necessary, the lawyers of the company “Prikhodko and Partners” will help you in finding an interested person.

• Company valuation

To determine the fair sale price, an assessment of the company’s value is made, taking into account its assets, liabilities and potential.

• Conclusion of a sales contract

After reaching an agreement, a sales contract is concluded between the seller and the buyer, in which all the terms of the agreement are fixed.

• Transfer of ownership rights

After signing the contract, the ownership of the company is transferred to the buyer. This includes re-registration of the company with the relevant authorities.

• Closing financial issues

The buyer assumes all obligations of the company, including payment of debts and fulfillment of contracts.

Closing a company through a sale and purchase can be a faster and more profitable option for the owners, as it avoids a lengthy liquidation process.

Liquidation of a company in Estonia is a complex and multi-stage process that requires a careful approach and compliance with all legal regulations. The choice between voluntary liquidation and sale of the company depends on the specific circumstances and goals of the owners.

Regardless of the path chosen, it is important to ensure that all procedures are followed correctly and in a timely manner to successfully close the business.

The lawyers of the company “Prikhodko and Partners” will provide you with high-quality and quick advice on liquidation or purchase and sale of corporate rights and will accompany you in such a difficult procedure with minimal involvement of you in the process