Bankruptcy and Liquidation

Experienced lawyers guide clients through the whole liquidation process, from notifying the relevant state authorities about the liquidation of the legal entity to the support during the audits by tax and other state authorities, settlements with creditors, as well as in collecting account receivables, closing bank accounts and excluding the enterprise from EDPNOU.

I. Liquidation of a business entity

1. liquidation of the subject of entrepreneurial activity by the decision of the owners;
2. resale of corporate rights (change of the company’s founders and director);
3. support of bankruptcy proceedings (in case of signs of stable insolvency).

1. Liquidation of a business. Procedure

• Conclusion of the contract for the liquidation procedure.
• Transfer of the original registration, accounting and reporting documents to the executor.
• Preparation of documents and submission of information to the state administration.
• Closing the account in the banking institution.
• Passing checks and deregistration with the district offices of the Pension Fund and Social Security Fund.
• Passing inspections and deregistration with the district offices of the tax inspectorate.
• Transfer of documentation with a long shelf life to the state archive.
• Deregistration with the statistical office.
• Destruction of the seal of the enterprise.
• Making an appropriate entry in the state register on the completion of liquidation procedures.

The deadline is at least two months.

2. Change of the founders and the head of the company

Change of the founders and the head of the company carried out by submitting a package of documents to the state registrar, resulting in a state registration of changes in information about the company, contained in the USRPOU, followed by a replacement of all necessary documents of the enterprise.

The procedure for changing the founders and the head of the company clearly regulated by existing legislation in Ukraine, in particular the Civil and Commercial Code of Ukraine, LU “On state registration of legal entities and physical persons-entrepreneurs”, which makes it possible to implement the above actions in the legal framework.

Procedure of change of founders and the head of the enterprise is carried out in much less time than the procedure of liquidation of the enterprise by recognizing its bankruptcy or liquidation of the enterprise by the decision of the owners, the cost of legal services for the registration of the change of the founders and the head is much lower than the cost of services for the liquidation of the enterprise.

3. Bankruptcy

If a company is insolvent or insolvent, one of the bankruptcy procedures (administration of assets, reorganization, liquidation) applies accordingly. The central figure in this procedure is the court-appointed insolvency practitioner, who is entrusted with this task. It should be noted that insolvency administrators are participants in bankruptcy proceedings at all procedural stages. Starting with a property manager, a rehabilitation manager and ending with a liquidator. Thus, a bankruptcy trustee is an integral element in the bankruptcy procedure.

Patriot Law Firm has professional arbitration managers who are highly professional, as well as with a high level of knowledge and experience in supporting bankruptcy and liquidation of enterprises. We can handle even the most complex issues.

The list of services provided by an insolvency practitioner includes:

• consulting on bankruptcy issues;
• taking part in court hearings;
• filing an announcement in the media about the opening of bankruptcy proceedings;
• formation of the creditors’ committee;
• holding a meeting of the creditors’ committee;
• drawing up a register of creditors;
• conducting an audit of the debtor;
• conducting the liquidation of the debtor;
• carrying out measures to find the property and assets of the debtor;
• closure of the debtor’s accounts with banks and other financial institutions;
• conducting an inventory of property;
• conducting an evaluation of property;
• sale of property through a public auction;
• drawing up a liquidation balance sheet;
• writing the liquidator’s report;
• exclusion of the debtor from the Unified State Register of Legal Entities;
• destruction of the seal and transfer of constituent and accounting documents to the archive.

Sanitation is understood as a system of measures carried out during bankruptcy proceedings in order to prevent the declaration of a debtor bankrupt and its liquidation, aimed at improving the financial and economic situation of the debtor, as well as satisfying in full or in part the claims of creditors through crediting, restructuring of enterprises, debts and capital and (or) changing the organizational and legal form and production structure of the debtor. That is, sanitation is applied to a debtor whose solvency is to be restored.

The procedure of liquidation of an enterprise through its bankruptcy is applied if the subject of entrepreneurial activity is unable to fulfill after the due dates monetary obligations to creditors, including wages, as well as fulfill obligations to pay insurance premiums for obligatory state pension insurance and other types of obligatory state social insurance, taxes and fees. Liquidation of an enterprise by declaring it bankrupt is advisable in cases where the enterprise is really in a difficult financial situation.

II. Voluntary liquidation (liquidation of an enterprise by decision of owners)

Liquidation of the company by the decision of the owners includes the following main stages:

1. making the decision on liquidation by the owners of the enterprise;
2. notification about liquidation of an enterprise to the body that carried out the state registration to make an appropriate entry in the Unified State Register of Legal Entities;
3. deregistration of the enterprise from the tax authorities;
4. deregistration of the enterprise from the pension fund;
5. deregistration of the enterprise from the social insurance funds;
6. deregistration of the enterprise from the employment center;
7. closure of bank accounts of the enterprise;
8. destruction of the seal of the enterprise;
9. the submission of a package of documents to the State Registrar for entry in the UGREOU about the state registration of the termination of a legal person, or Sole proprietor, as a result of its liquidation.