How do I close a company abroad, reorganize or liquidate an enterprise, firm, or entrepreneur?
The Swiss company Harbin Consulting SA provides the following services: Opening of bankruptcy proceedings, representation in a business court, bankruptcy procedure, appeal to bankruptcy.
The opening of the bankruptcy procedure is possible both on the part of the creditor and on the part of the debtor in arrears with the creditors.
The liquidation of an enterprise leads to its termination without the transfer of the rights and duties of succession to other persons.
What is the liquidation of an enterprise?
The liquidation of an enterprise is the termination of the activity of the organization by making an appropriate entry into the trade register, terminating the rights and duties (or transferring them to another person). This decision may be taken by the founders of the enterprise. This decision shall be approved by a protocol of the General Assembly of the founders or by a decision of a single participant.
Why would a decision be taken to liquidate an enterprise?
The reasons may be different:
- Management and proprietors refuse to pursue commercial plans because of circumstances;
- It is not possible to repay the arising debt;
- There is a desire to start business from scratch;
The liquidation of an enterprise is a complex and responsible process, governed by legislation and adopted by practice. In reality, the requirements of the tax authorities may differ and be stricter than those specified in the law, and the procedure may have its subtleties, which are determined only by the requirements of specific inspections.
The liquidation of firms may also take place at the initiative of the State and the tax authorities:
- If the number of participants is 50, it should be transformed to AO (Zao or OAO) within a maximum of one year. In the event that enterprises have failed to convert, they may be removed by the courts.
- In the event that the statutory capital is not fully paid, the company must reduce the statutory capital or decide to liquidate the enterprise.
- In the event that the value of the net assets of a society is less than the minimum amount of the statutory capital established by law, the company shall be liquidated.
- If the business was carried out in flagrant violation of the law in force, or if the law was irregular, the enterprise would be liquidated by a tax inspection.
Tasks to be performed by Harbin Consulting SA:
- Protection of business against creditors ' actions
- Effective recovery of receivables
- Liquidation of business
- Sales of business
- Change of founders
- Cleaning up the company from debt
- The withdrawal of the enterprise's assets
Change of organizational and legal structure
Full audit of financial activities and assets
- Rivalry with the takeover of an enterprise
- Changing the statutory capital.
How to liquidate a company
The period of voluntary liquidation of an enterprise is long and can range from 4 to 8 months. To close a company, several steps must be completed: Adoption of a decision on the liquidation of the company, approval of the composition of the Liquidation Commission, timing and liquidation procedures. Sending of the liquidation report formally to the tax authority at the place of record. The communication shall be sent within three days of the decision on liquidation. The posting of the liquidation of the company in official print media - The Gazette of State Registration or the Journal of the Supreme Arbitration Court of the Russian Federation.
The publication is necessary so that creditors can require the enterprise to refund money. The following documents must be provided to accommodate the official information:
- A two-copy application form, a certified seal of the organization and the signature of the Chairman of the Liquidation Commission;
- A copy of the decision on the liquidation and appointment of the Liquidation Commission, the certified seal of the Organization and the signature of the Chairman of the Liquidation Commission;
- Payment document;
- Cover letter in two copies, certified by the Seal of the Organization and signature of the Chairman of the Liquidation Commission. The cover letter should include a list of documents to be submitted for publication, the delivery address of the publication (when the journal is paid), and the document on which the accounting records are based and sent;
- Power of attorney (in the case of a message from a trusted person).
Notification of disposition of employees, employment service and creditors of the organization. The imminent dismissal of employees of the firm shall be notified in writing at least two months in advance of the forthcoming dismissal. Creditors should also be informed of the liquidation of the Company and publication of the announcement in the press will not absolve the company of that obligation. Final tax verification. Normally this procedure takes 2-3 months, regardless of when the last verification was made. Debt recovery from debtors of the liquidating organization. The intermediate liquidation balance, which is generally in the form of a normal accounting balance. Inventory. Repayment of debts to creditors. The Civil Code of the RF establishes the order in which this should be done.
- The first-line creditors are those to whom the liquidating company has obligations arising from the injury to life and health, as well as moral damage.
- Second-line creditors are those who the liquidated company is required to pay termination indemnities and salary arrears.
- Third-line creditors — budgets at all levels, as well as extrabudgetary funds.
- Fourth-line creditors are all other persons to whom the company has money or property liabilities.
Should you trust a professional company more?
Any litigation is time comsuming for both managers and directors alike, but at the same time they require quality work, and the result is compromise, in the form of a contract with a consulting firm to perform these tasks for a moderate consideration while receing professional service, without errors or difficulties. Harbin Consulting SA is happy to offer you help to liquidate your business, we've been doing this since 2001, and we are trusted by thousands of customers.
Liquidation of an offshore organization
To date, the simplest legal way to sell a firm is to eliminate it through an offshore company. In doing so, the enterprise ceases to operate completely through the change of its participants. The first step of the procedure is to enter the non-resident company as a participant in the legal entity in need of liquidation. This is usually done by a small increase in its statutory capital and its acquisition of a share of 20 per cent of the subject enterprise. The owner of the company in liquidation is then disposed of by the participants through the alienation of its share. The Director-General then closes the settlement account and the owner of the company becomes a foreign investor. The Director of the organization is dismissed by order of the new owner and a representative of an offshore of non-Russian nationality is appointed in its place. All changes to the statute are registered with the tax authority. The elimination of the "offshore" has many advantages, and one of its key strengths is the speed of processing. Normally, the entire process takes no more than 1.5 months. In this way, companies can be liquidated without an accounting audit and without removing the organization from the registration authorities.
Legal persons may also be discontinued as a result of the reorganization of the enterprise. The reorganization of the enterprise is the process of transferring all property, rights and obligations to other legal entities called successors. There are no successors in the liquidation of the enterprise, i.e. the rights and the obligations of the liquidated person cease to exist together with the liquidated enterprise.
A service is often found to redecorate the enterprise with further liquidation. This is resorted to when, for any reason, it is feared that the business and liability must be inspected or discontinued.
After a proactive audit, which includes: Tax auditing, accounting auditing, financial auditing, and legal audit the customer will receive reliable information about the actual state of the company, which will allow the enterprise to understand the signs of bankruptcy or lacking.
A world agreement could be concluded between the debtor and the creditor, both before the court and at any stage of the insolvency proceedings. Creditors may grant deferred and delayed payments, debt relief if they see the possibility of restoring normal financial status. The debtor may be required to exchange debt for shares or other obligations. This exchange process is called the restructuring of the capital structure.
Harbin Consulting SA Experts will help you close your company abroad, reorganize or liquidate your business. Working with Harbin Consulting SA is convenient and secure!