Liquidation of company with or without debt in Ukraine
Liquidation of company means full suspension of activity of legal entities or PE (Article 104 of Civil Code of Ukraine). Each case of liquidation is unique, and therefore requires rational strategy and individual approach. In order to complete this procedure at minimal cost and without legal complications for business, please contact us at Financial Chain Corporation.
Since 2002 our company helps businesses with quick and cost-effective liquidation of companies of any ownership form, that have payable accounts of various size and structure or are under investigation.
Forms of company liquidation
To have a basic understanding of procedure, let’s look at liquidation forms:
- Formal, implying the company’s termination without transfer of its rights and obligations to a new subject of economic activity as a successor. Liquidation is carried out on voluntary basis or by court decision through the bankruptcy procedure. In the latter case, state authorities or local self-government are the plaintiff.
- Alternative, which is suitable for companies where change of management (director, founders) and/or reorganization through merger or accession is required. This form is distinguished by simple organization and speedy procedure.
How company liquidation is carried out
The liquidation procedure for legal entity consists of the following steps:
- Making decision on liquidation of the business entity. For this purpose, the general meeting of company owners is held and the receiver is elected, which in future will be entrusted with all measures and actions to implement the procedure.
- Submission of Minutes of meeting to the Department of State registration, after what the appropriate entry in the UNIFIED STATE REGISTER is made.
- Filing application on company closure to the fiscal authorities, Pension Fund and other compulsory social insurance funds. This enables authorities to carry out an unscheduled audit of the company. No-debt certificates on taxes, duties and charges to the budget, as well as certificate on company de-registration from these authorities are handed directly to the receiver.
- Notification of debtors and creditors of the situation, setting timelines and sequence of creditor petitions to the liquidated company.
- Closure of all settlement accounts in the banks which will not be involved into liquidation process.
- Suspension of work of all detached units (branches, departments), if any.
- Filing applications to the licensing authorities to cancel all permits (licenses, authorizations, etc.).
- Settlement of issues related to debt recovery from counterparts willingly evading their obligations under the contract.
- Asset evaluation and inventory of property of the legal entity.
- Firing of the company employees.
- Preparation of intermediate liquidation balance sheet based on the creditor claims received.
- Settlements with creditors in order of priority.
- Sale of the company assets to meet the creditors’ claims to liquidated company.
- Drafting and approval of the final liquidation balance sheet by the receiver.
- Distribution of remaining property (or proceeds after its sale) between business owners.
- Transfer of company documents to the archive.
- Destroying of seals and stamps.
- Other actions required for liquidation of the legal entity.
The procedure described above is suitable for Additional Liability Company, Co. Ltd and private companies. At the same time there are certain nuances in suspension of the joint-stock companies, activity of which is governed by special legislation of Ukraine.
In the process of decision-making on business termination by the owners (founders) the following important aspects need to be taken into account:
- Liquidation procedure and its preparation is time and effort consuming and scrupulous process that takes at least 6 months.
- Process requires certain expenses, for example, to pay for publications, issue of certificates, compulsory charges and fees, sending of notifications, etc.
- Attraction of external advisers will simplify and accelerate the company liquidation, and would also avoid financial and legal risks associated with the possible errors in the process.
Violations usually occur because the company owners are trying to save money and hire non-qualified specialists, and the positive outcome is unlikely in this case. Our company FChain employs professional tax consultants, lawyers and arbitration managers. We are ready to provide a full range of services related to the selection and implementation of the optimal option of company liquidation. Our company will become a reliable assistant and adviser, as well as outsourced employee for your business.
Specific aspects of firing personnel
Firing employees during the business closure is a critical issue. This process should follow procedure strictly regulated by the legislation:
- Warning Trade Union about planned firing all personnel, such notice shall be filed not later than 3 months before the liquidation process (Article 22 of the Law of Ukraine «On trade unions, their rights and guaranteed activity”).
- Notification of employees about the company closure 2 months prior to the adoption of a formal decision. In addition, employment center shall also be notified according to the Article 49-2 of the Labor Code of Ukraine.
- Firing personnel and severance payments. Within 10 days a list of fired personnel is submitted to the employment center.
In the process of firing all the staff receiver or HR manager prepares a number of documents: form 4-PN, Order on jobs reduction, and personal notices of dismissal. We will help you carry out the procedure of firing employees related to the company liquidation in accordance with the requirements of the Labor Code of Ukraine.
Why trust us
FChain experience in jurisprudence, continuous skill development and opening of new practices enables to create favorable and safe conditions for improvement of your business.
Our customers can contact us for a consultation or to solve specific problems. We will answer any questions.
- Full confidentiality.
We are committed to our clients and looking for a long and fruitful cooperation with those who sought our help just for once.
In our company, you can order different types of services – on a turnkey basis or separately. We are also focused on outsourcing our services, that allows to form a professional liquidation commission in your company.
More than 1000 successfully completed trials and continuous practice of our experts guarantees quality of services. We can handle even with a worst-case situation and act in the client’s interests.
If you need help in company liquidation right now, please contact us. FChain experts will provide any required clarifications and share rate schedule for our services. You can contact us by phone or in online chat on the web-site, all contacts can be found in the corresponding section.