Liquidate a company in Ukraine (in the form of an LLC or a private enterprise)

Types of Business Liquidation in Ukraine

The current legislation of Ukraine provides several options for liquidation. Choosing the right option for you will depend on many factors, for example: the legal form of business, type of economic activity, the amount and structure of accounts payable and receivable, the number of assets, the availability of the necessary financial and accounting statements of the company, etc.

For more information about the types of LLC liquidation, you can explore the following links:

Alternative LLC Liquidation: This involves the process of transferring an LLC to a new owner through the procedure of "Alternative LLC Liquidation." After the purchase, all subsequent responsibilities for the company are assumed by the buyer. The re-registration process usually takes a few working days. You can find timelines, costs, and the step-by-step procedure by following the link. 

In cases where a company is burdened with debts or is involved in criminal investigations, the change of director to a new one does not release the former director from personal liability. 

LLC Liquidation with Debts in Kyiv- Legal Advice on Liquidating a Company with Debts. Is such liquidation possible and how is the process of liquidating an LLC with outstanding debts carried out? Click the link to learn about the timelines and procedures for liquidating a company in Kyiv with debts.

LLC Liquidation via Participant Withdrawal: Our legal experts will illustrate the process of withdrawing individual participants from an LLC using practical examples. Click the link to gain insights into the procedure of company liquidation through participant withdrawal.

LLC Liquidation by Owner's Decision: в In this article, you'll discover the steps an owner should take if they decide to cease the operations of an LLC. We'll outline the procedure for LLC liquidation and delve into the particulars of winding down a company, including details like protocol creation and the establishment of a liquidation commission. Read more here.

LLC Liquidation through Bankruptcy: Exploring the distinctive aspects of the procedure for liquidating a company in Kyiv and Ukraine through bankruptcy. Click the link to understand the timelines and intricacies of LLC bankruptcy.

Legal Consultation for Company Liquidation in Kyiv

Company liquidation involves a complex process with numerous stages, each accompanied by various challenges. If you're looking to navigate these difficulties and gain a comprehensive understanding of the company liquidation process, don't hesitate to reach out to us for an introductory consultation!

During this consultation, our lawyer will analyze your specific situation and provide tailored solutions depending on your circumstances. We aim to provide detailed and clear answers, going beyond simply citing legal norms.

During the introductory consultation, our specialist will:

• Explain the general procedure for LLC liquidation.

• Present multiple solutions that suit the specifics of your case.

• Clarify the concept of alternative liquidation and its potential benefits.

Our legal expert will also discuss potential risks and issues, as well as strategies to mitigate them.

If you have numerous or unconventional queries, we recommend considering a "Roadmap" service. This step-by-step action plan, devised by our lawyers, is designed to help you achieve your goal. The cost of the "Roadmap" is also included in the service fee if you decide to proceed with our LLC liquidation assistance.

How to close an LLC with debts through reorganization? 

Initiate a reorganization by transferring its assets, rights, and responsibilities to the legal successor.

Downsides: It's important to grasp that this doesn't automatically resolve the issues, as the legal entity itself essentially disappears. However, the notion of a legal successor comes into play – someone who would agree to take control and shoulder the debts.

How to liquidate an LLC by filing for bankruptcy?

As you know, bankruptcy begins when a company cannot repay debts to its creditors. However, contrary to widespread perception that the creditors are counterparties, employees and banking institutions, the tax authorities may also act as creditors.

This means that in case of tax debt, which the company is unable to settle, you can also initiate the bankruptcy proceedings. Sometimes this may be the most appropriate way to address the tax debt issue.

Closing an LLC with a zero balance: Specifics and Advantages of the Procedure

There's a viewpoint that closing LLCs with a zero balance happens more swiftly. To a certain extent, this holds true. Yet, due to the current review backlog, including those for zero-balance LLCs, the timeline isn't confined to just a few months. In reality, it takes about a year. The advantage lies in the relatively prompt nature of completing the audit process, which, nevertheless, still demands waiting. 

Challenges When Dissolving an LLC in Ukraine

- Unsubmitted Reports. Often, the issue arises that certain reports have not been filed. Even if they were filed, glitches in the tax system might prevent their proper reflection. This necessitates presenting copies with acceptance stamps, as well as receipts for electronic report submission. 

- Unpaid Taxes (Underpayment, Overpayment). If a company has operated for an extended period, had numerous employees, and significant turnovers, no accountant is immune to errors, including payments to incorrect requisites. 

- Lost Primary Documentation (Transfer and Acceptance Acts, Contracts, Invoices, etc.). Relocation, changes in accountants or management, or simply neglecting to request documents from a counterparty – all these scenarios can occur. 

- Differing Positions Among Government Officials. There are situations where the same legal provisions are interpreted differently. It can be quite disheartening when government officials have their own unique interpretations.

Our company takes a proactive approach in navigating the process of business dissolution in Ukraine. This approach helps preempt such problems and allows you to minimize your involvement in the overall process.

What to do in case of tax payment errors detected during the liquidation procedure?

Sometimes during the company’s operation, things go unplanned or the plan is false: supporting documents are lost, accountants are confused, and make mistakes, etc. All this may result in certain problems during the liquidation of the company.

Case: We were contacted by a Client whose accountant did not timely notice that the company’s total income exceeded one million and they had to apply for registration as a VAT payer by the 10th day of the following month.

Thus, they missed deadlines, didn’t pay the tax, and “shelved” the company, hoping that the tax authorities wouldn’t notice that. And no one actually noticed that until the liquidation inspection, during which a number of other violations were found.

Since the Client contacted us during the audit, our auditors and lawyers had to make every effort to resolve the situation painlessly for the company’s management.

In such cases, you can also use the “alternative liquidation” model, since there are services that sign the problem companies over themselves and perform the liquidation procedure on their own.

Procedure and term of closing (terminating) an LLC: Ukraine, Kyiv and regions

We can offer several options for dissolving a company (LLC or PE) in Ukraine. The stages of the LLC liquidation procedure, as well as the price of the LLC termination and the relevant services, will depend on the line of approach to the final goal, which we will coordinate with the Client, and sale, change of owners in another way, etc.

An “alternative liquidation” is the fastest way to change the founding members and withdraw from the management of the company. However, this procedure does not always exclude the risk of liability of the founders or management (even if they are no longer employees of the company).

Of course, one of the most pressing questions that our Client Managers hear is whether it is expensive to terminate a PE or LLC in Ukraine and what is the price of the accelerated procedure. To find out the price and duration of the procedure, you must first of all, determine the actions that we will take to resolve the issue as efficiently as possible.

The procedure of liquidation of LLC, PE in Kyiv

Our lawyers offer You the following services:

• Liquidation of an LLC in Kyiv on a turnkey basis;

• Liquidation of an LLC with debts;

• Alternative liquidation of an LLC;

• Urgent liquidation of the company;

• Liquidation of the company through bankruptcy.

Provision of this service can begin with a consultation on the options for the LLC liquidation, and later - can be followed by liquidation (if the Client has already been consulted about the key points of this procedure). Before starting our cooperation, we sign an agreement with the Client.

After paying for our services our lawyers start developing documents to successfully terminate the company and implement necessary actions. At this stage our lawyers may need to cooperate with the Client’s accountant (if required and stipulated in the agreement).

Upon termination of the services, the Client’s company (LLC or PE) officially loses its status of a legal entity (in case of the “alternative liquidation”, the corporate rights and the company management are transferred to persons who are not related to the Client).

To sketch out the LLC liquidation procedure, say, by the decision of the owner, you will have to go through the following stages:

• Making a decision to liquidate an LLC. Such a decision shall be taken at the General Meeting of LLC members and recorded in the Minutes.

• Filing documents to the state registrar. A full package of documents, including the adopted decision, shall be submitted to the state registrar within 3 business days following the date of the decision on the LLC liquidation.

• The work of the liquidation commission. This is a whole complex of actions, which includes, for example, closing the accounts of the legal person, an inventory of its assets, the dismissal of employees, etc. As a result, an Act of the Liquidation Commission is drawn up, which specifies a list of the actions carried out and the documents obtained as a result.

• Filing the final package of documents on termination of the legal entity to the state registrar.

Of course, the procedure of alternative liquidation or liquidation of the company through the court will be absolutely different and will consist of other stages.

If you don’t know how to correctly dissolve the company in Kyiv or regions, don’t hesitate to contact us.

We have been working in this area for more than 10 years and have passed each of the possible procedures dozens of times.

Moreover, we have strict standards of our services and follow them rigorously.

• Our lawyers have in-depth legal expertise. This means that our competence is not limited to one area of the law. We carefully study all new developments in the law, constantly develop new services, and gain experience in a wide variety of legal fields to be able to solve any problem more effectively.

• We are open-minded. Our case studies, in the form of articles and publications, are regularly published on our website, and are available to anyone who wants to get more information or to try to figure things out for themselves. You won’t find a single cheated review - behind each review there is a real person and invaluable experience.

If you want to know how to liquidate an LLC, how much it costs to terminate a company in Ukraine and whether it can be done in the shortest possible time - our lawyers have answers to all these questions. Don’t hesitate to call us!