Urgent Liquidation

Urgent Liquidation

The legislation of Ukraine provides for a limited number of ways to dissolve a company. The most well-known of them include company`s termination upon the decision of the owners in the process of voluntary liquidation and bankruptcy proceedings. Liquidation usually applies to the enterprises without debt obligations. Bankruptcy proceedings start, if a company has accounts payable. Before choosing one of the following ways of dissolution, you should carefully consider both positive aspects or benefits and complications or potential risks in the implementation of each of them.

The first way is the liquidation of the firm when it declares bankruptcy. It is creditors who typically initiate this procedure. They provide the evidence of existing debt to the court and, provided public authorities recognise the enterprise as unable to meet its obligations to creditors and/or pay all the necessary official fees, the firm is declares bankruptcy and starts the liquidation procedure.

The second way is a voluntary liquidation upon the decision of the owner. It includes the following steps: appointment of a Liquidation Commission or a liquidator; notice to creditors of the decision (after this creditors are given at least 2 months to submit their claims); inventory process; inspections by tax service authorities, the Pension Fund of Ukraine and relevant social insurance fund as well as registration cancellation with all the above authorities, followed by a number of other important procedures, after which an entry is made in the State Register on dissolution of the company.

The above liquidation procedures, as provided for in the current legislation, are a rather long and complicated process. Real life and entrepreneurial activities tend to be much more multifaceted. Often problems arise and they prove to be difficult to solve using standard means.

Therefore, there is a third equally legitimate way to terminate business that is much simpler and faster. This is a termination through the transfer (sale) of corporate rights — so-called urgent or alternative liquidation.

As a rule, the process of urgent liquidation takes from 2 to 3 days and during this period the existing founders and director are actually replaced. If necessary, company also changes its legal address, telephone number, lines of business and its name.

The alternative liquidation procedure is extremely convenient, since it saves you considerable amount of time and financial costs that cannot be avoided during a standard liquidation procedure. Our experienced staff shall undertake to perform virtually all actions for liquidation of your company. You are only required to submit a package of all the necessary documents to us and visit a notary in person (in order to certify authenticity of the participants` signatures on the Minutes of the General Meeting on withdrawal of founders from the company).

After the transfer of corporate rights, you need to perform a state registration of these and other changes (significant to you). Evidence of registration completion (in this case — liquidation) is an extract from the United State Register with information about a new founder and director of the firm. From then forward, the alternative liquidation procedure shall be considered completed. Legal relationships between you and the firm are terminated from this moment on and a new founder and director shall take responsibility for all the matters relating to its business activities.

It is difficult to overestimate the simplicity and affordability of this liquidation procedure. This is indeed the only legal way to discharge of unnecessary obligations concerning this company quickly and completely for whatever reason. The length of the procedure is also of great importance. For example, urgent liquidation comes to the rescue when you are leaving Ukraine and it is simply physically impossible for you to undergo all the inspections by the controlling authorities.

Nevertheless, one should understand and take into account potential risks of this liquidation procedure. Therefore, we strongly recommend you to consult an expert in this area before deciding to transfer your corporate rights on your own discretion or to order this service in a law firm. Depending on the actual situation of the ordering customer, an experienced lawyer will help you to make the best, well-considered decision and to avoid all the unpleasant aspects as much as possible.

In any further information is needed or/and if you would like to order an urgent liquidation, please feel free to contact us using contact details listed on the website.

In order to the process will pass without mistakes and in maximum short terms and also to receive qualified consultation in all questions, you interested in, call the number +38-050-154-24-67, 068-822-59-52.

Об авторе

Сергей Романенко author

Юрист, специалист в сфере уголовного и хозяйственного права. Работал в Харьковской облгосадминистрации, органах местного самоуправления, органах уголовно-исполнительной системы, а также руководителем и учредителем ряда коммерческих структур.