How does liquidation differ from bankruptcy?
Liquidation – is the procedure for terminating the legal entity (the termination of its rights and obligations in full). Liquidation can be carried out according to the general procedure regarding those legal entities that do not have signs of insolvency, or those that do not conduct business (there are no assets and liabilities).
Legal entities with signs of sustained insolvency are persons who, for a certain period of time, do not have not enough assets to fulfill monetary obligations to third parties; they can not be liquidated according to the general procedure. Bankruptcy procedures are applied to liquidate such legal entities.
As a general rule, the bankruptcy procedure is applied to restore the solvency of legal entities. In cases where it is not possible to restore solvency, the bankruptcy procedure leads to the liquidation of the insolvent business entity.
How much does the liquidation and bankruptcy procedure cost?
The price of liquidation services from our firm depends on the complexity and duration of the procedure. So, for example, the cost of liquidating a legal entity that does not conduct business (as a rule, without assets and liabilities) will be about 10-15 thousand UAH. However, the final cost of such services in each individual case is determined individually after a detailed review of the client’s documents. The cost of the services of specialists associated with the support of bankruptcy proceedings is always set individually after detailed familiarization with documents and communication with the client.
Why does the withdrawal procedure takes a lot of time?
Legally, the liquidation of a legal entity leads to the termination of the rights and obligations of such a person, and in fact this procedure ends with its exclusion from the “Unified State Register of Legal Entities, Individual Entrepreneurs and Public Formations”. At the same time, as a rule, due to the large number of technical actions (including passing the inspection procedures in the fiscal authorities) that the liquidator needs to perform, this procedure can take from 6 months or more.
Why it is impossible to liquidate the company in 24 hours?
The Internet is replete with tempting offers for cheap liquidation in 24 hours or 3 days. In our opinion, the persons offering such services mislead customers by substitution of concepts. A change of ownership / manager, which can indeed be carried out fairly quickly, is NOT a liquidation of a legal entity as such, and in the long term carries significant legal risks for the former owners / managers (especially if the legal entity carried out economic activities and has certain “skeletons in the closet”).
Therefore, we always offer our clients the legal ways of business termination, and the method and strategy are determined on the basis of the particular circumstances of the business and other features.
Why qualified lawyers services for the withdrawal of the company from the market can not cost $ 200?
In the process of liquidation, as a rule, different specialists are involved (especially if the working business structure is eliminated), this procedure is lengthy and requires specific knowledge and skills, as well as incurs a number of additional costs. If you are offered such a cost, then perhaps you are dealing with fraudsters or lawyers who, using the client’s ignorance of the laws, instead of a full liquidation procedure, offer only a change of ownership.