What is Liquidation of a Company?

In most cases, a phrase such as “ liquidation of firms »Many entrepreneurs associate with the complete disappearance of the enterprise. However, this is not always the case. Complete liquidation provides for their closure. Accordingly, there is no discussion of any transfer of duties or rights to unauthorized persons. But will it be a complete liquidation of the organization that the replacement of the leader and founder is carried out exclusively? Of course no. In such a situation, there will simply be a change in the CEO, as well as the founder, who are likely to change the management style of the company and introduce some innovations in the direction of its activities and further development. However, the enterprise itself will remain and will be able to successfully carry out its work. In such a situation, a tax audit is not required.
Many entrepreneurs often have a question as to whether a merger or acquisition of a company with another organization is an unambiguous liquidation. It should be noted that there are many nuances that only a law office can provide that can provide appropriate services and provide representation in arbitration .
What are the stages of the liquidation of the company? The first step is to replace the director and founders. Only after this is the merger or accession carried out. As a result of the reorganization, a certificate is created regarding the completion of the company. Only then the company will be excluded from the state registry. The organization no longer exists, but the duties and rights of the old company are directed to another legal entity. The company continues to work. Thus, the company was liquidated, but it did not disappear without a trace. In the process of liquidation (except for situations of bankruptcy), the following documentation must be submitted to the tax:
- liquidation balance sheet;
- statement;
- a certificate regarding the payment of state duty. Today its size is 20% of the amount that is required to be paid at the time of registration of the legal entity;
- a certificate confirming the submission to the Pension Fund of information established by law.
A list of such information is determined in accordance with federal law.
Only after five days will the company be excluded from the state unified register of legal entities. This is where the liquidation procedure of the company will end.