Liquidation of the Private enterprise

Liquidation is one of forms for a private enterprise to terminate its operation. Liquidation implies termination of rights and obligations assumed by a private enterprise without succession (assignment of rights and obligations to other persons).

A private enterprise may be liquidated in the following cases:

• by decision of its owner (owners);
• by court decision;
• due to expiration of an operation term or due to achievement of a goal for which it was incorporated;
• in case it was acknowledged as bankrupt in accordance with the established procedure;
• in case its state registration was cancelled in cases stipulated by law.

Voluntary liquidation of an enterprise is carried out by a liquidation commission appointed by the enterprise owner (owners). The body which made a decision on the enterprise liquidation establishes a procedure and terms for liquidation, as well as the term for the creditors to set their claims.

Liquidation commission posts a notice on private enterprise liquidation in print media, takes required measures aimed at recovery of receivables by the private enterprise, appraises available property of the enterprise being liquidated, makes settlements with the creditors, draws up a liquidation balance sheet and submits it to the owner. Accuracy and completeness of the balance sheet must be verified in accordance with the procedure established by law and mandatorily inspected by state tax authority with which the private enterprise is registered.

For state registration of private enterprise termination through liquidation, a chairman of liquidation commission (or any person authorized by the chairman) – upon completion of liquidation procedure stipulated by law but not until expiration of terms for the creditors to set their claims – submits a package of documents required by law to the state registrar.

If documents are submitted in full and in compliance with the established terms and all legal requirements, and state tax authority and/or pension fund did not provide any notice on their objections against state registration of terminated legal entity, a state registrar makes an entry to the Unified State Register on state registration of terminated legal entity due to its liquidation. At the same time, a state registrar notifies the relevant statistical offices, state tax inspection and pension fund of Ukraine on state registration of the enterprise termination.

Liquidation of a private enterprise is considered completed and the enterprise as terminated since the respective date of entry to the Unified State Register on state registration of the enterprise termination through liquidation.

Specialists of ‘KD CONSULTING’ legal & consulting firm provide in-depth consultancy concerning liquidation of a private enterprise and practical help on all stages of it.