Liquidation and bankruptcy initiation services

The liquidation of a company is the procedure of closing the company. This process can take place through compulsory liquidation or voluntary liquidation.

Compulsory liquidation is carried out by the decision of a court or other state authority, which makes a decision to close the company in order to settle outstanding claims. In this procedure, a bankruptcy trustee appointed by the court leads the liquidation process, and the assets of the company are sold in order to settle debts owed to creditors.

Voluntary liquidation, on the other hand, takes place based on the decision of the owner or management of the company, which concludes that it is unable to continue with regular business. There are two approaches to voluntary liquidation: summary liquidation procedure and regular liquidation procedure.

The abbreviated liquidation procedure implies that the owner signs a declaration of absence of debts, along with taking responsibility for the property in the next three years for any debts. This procedure is applicable when the company has had no financial transactions on the account, and salary contributions are not considered debt.

The regular liquidation procedure is applied when the company has a certain turnover, but there are no outstanding claims. It is necessary to submit a certificate from the tax administration on the absence of debt, and then submit a request to delete the company from the Central Register.

Corporate bankruptcy is initiated when the firm, despite financial transactions, does not have sufficient funds to pay off its debts to creditors. This procedure can be initiated by the creditor or the owner of the company. During the bankruptcy proceedings, which are conducted before the Commercial Court, a bankruptcy administrator is appointed, and the court concludes the liquidation proceedings if the debts are greater than the claims.

If the founder proposes a Reintegration Plan, and it is accepted by the creditors and the court, the business entity can continue to operate, avoiding deletion from the Central Register. It is important to note that the mentioned procedures differ depending on the legislation of a particular jurisdiction, and it is crucial to comply with the legal regulations in order to conduct liquidation or bankruptcy processes properly and in accordance with legal norms.

Contact and cooperation

We at the T-Accounting agency help you in all steps, from submitting an application for termination of activity, to the procedures at the Tax Administration, and all the way to receiving the decision on deletion from the register. Contact us for all questions and assistance in the process of company liquidation. Contact us for all questions and assistance in the process of freezing and closing the company.