Overview of company liquidation procedure

In order to be able to liquidate a company (instead of declaring insolvency) – it should have positive equity.

First Stage

1. Prepare shareholders’ and Board decisions about starting the liquidation process and to appoint a liquidator. Obtain the liquidator’s written accept.
2. Inform Company Register about liquidation within 3 days after decision of liquidation and submit documents’ copies and fill in appropriate forms.
3. Inform SRS about liquidation within 10 days after decision of liquidation.
4. Prepare liquidation starting Financial Statements and send notices to all known creditors about starting of liquidation process. Creditors can submit their claims within 3 months after publication about liquidation.

Second Stage

1. Collect debts and sell assets.
2. Repay creditor claims.
3. Prepare liquidation closing Financial Statements.
4. Stop VAT payer status.
5. Submit to Company Register:
   • application about end of liquidation process;
   • liquidation closing Financial Statements;
   • plan of distribution of remaining property between shareholders including liquidator’s fee, shareholders’ acceptance on this plan, reference from SRS that there are no tax debts;
   • report about losses that appeared due to impairment of assets;
   • original Registration Certificate.
6. To submit Corporate Income tax declaration with liquidation closing Financial Statements to SRS.
7. Close bank account.
8. To deliver all needed necessary documents to State Archive.