Liquidation of LLC and PE in Ukraine
One of the most complex issues in lawyer’s practice has always been enterprise liquidation. Such activity is always full of various complicating details and demands time and substantial expenditures. However, an experienced lawyer can help you cope with it quickly and without any negative consequences. Enterprise liquidation is necessary in case a company stopped being profitable and efficient. The fact of enterprise liquidation should be listed to the state register. The procedure is stipulated by current legislation of Ukraine.
It is worth to know, that starting with a time-consuming preparatory stage, the entire liquidation process takes about two months. At the first stage a liquidation committee is established, documents are systematized, bank accounts are closed, liquidation balance sheet is set. A qualified lawyer will help to shut down a private enterprise within fixed terms. Though it is possible to perform liquidation independently, still we advise resorting to the service of expert.
Procedure of LLC Liquidation
At the moment there are two types of company liquidation: forced and voluntary. The first one is based the court decision. Such court proceedings take place in case company’s activity does not comply with legal norms and regulations, a company is a bankrupt or it has been registered in an inappropriate way. Voluntary liquidation of LLC in Kyiv and Ukraine is done at will of its owner.
As it was mentioned above, the procedure takes about 2 months providing that all the legal requirements and regulations observed. However, sometimes liquidation process may last from 4 up to 8 months. The following steps are necessary to shut down a legal entity:
- To make a decision on company’s liquidation, determine the deadline, establish a liquidation committee, and define the procedure;
- To submit the information on company’s liquidation to the tax inspection at place of residence within 3 days after the decision is made;
- To publish an announcement regarding company’s liquidation in the state media. Such action is required in case a company has creditors. Otherwise they may require return of their investments;
- To inform all the employees, creditors, state employment agency about company’s liquidation. Staff employees should be informed beforehand: in 2 months before liquidation. In case there are employees that refer to specific categories, it is necessary to inform labor organizations as well (in 3 months);
- To close company’s bank accounts. The only account in hryvnya is to be remained for final liquidation stages and cost transfer to the creditors. At this stage all branch and representative offices if any are closed as well;
- To assess the property and perform inventory in accordance with the relevant regulatory act;
- To charge accounts receivable and draw up interim liquidation balance sheet that is the subject of approval at a general meeting. To settle with creditors. Order of priority is stipulated by the clause of Civil Code of Ukraine. In case the available costs aren’t enough, inventoried property is sold;
- To draw up an act regarding the liquidation committee;
- To close a bank account that was used for payments to creditors;
- To cancel registration of a company in all funds, tax inspection, to destroy stamp and get relevant receipts.
Certainly, everything can be done independently, but it is much easier to address the professionals and order the service of company’s liquidation in Kyiv and Ukraine.
FCHAIN Company provides a full range of legal and accounting services, including liquidation of LLC, PE, sole proprietorships and other types of companies in Kyiv and Ukraine. Call us to get more detailed information.