Can a company be sold (liquidated) during the war in Ukraine?

Unfortunately, the war had a particularly adverse impact on business, which in many cases became unprofitable. Companies, especially those with foreign shareholders, were no longer profitable and no longer fulfilled their functions. Owners have no choice but to liquidate the company or try to sell it in order to raise some money.

In our article lawyers will tell you how to properly organize the liquidation of a company under martial law.

You may also like: Alternative Liquidation of LLC: Procedure, Terms and Cost

How to sell a company, including through an alternative liquidation procedure in time of war?

The liquidation procedure is quite a long process, which often takes years. The best solution is “alternative” liquidation, which we have mentioned repeatedly.

The procedure consists of two stages. First, you need to formalize the purchase and sale of shares in the authorized share capital of a limited liability company with a notary. You must also certify the act of transfer and acceptance with the notary. Prior to the war, this document was drawn up in a notarial form. Now it can be executed on an ordinary sheet, but notarization still remains a must.

The purchase and sale agreement shall be notarized only at will. Usually it is executed in a simple form, rather than notarial form.

Please note! Not all notaries work during the war.

Even from the very beginning of hostilities, a register of notaries working during the war was prepared. Notaries had to be included there. We add a link to this list, as it may be useful: https://notar.npu.ua/.

The second stage in the alternative liquidation procedure is change of management, if necessary. If the director was one of the foreigners who also wants to leave the company, then the appropriate decision is needed. This decision shall also be certified by a notary.

If foreigners do not have the possibility to come to Ukraine personally to certify necessary documents (and in the time of war even if they have possibility, they will hardly have desire), we can offer to issue power of attorney to our employees, who will take appropriate actions on behalf of foreign shareholders. The power of attorney is drafted by our specialists. Foreign shareholders will need to have it notarized and certified according to international treaties between our states (in most cases it must be apostilled).

You may also like: Liquidation of a Foreign Company’s Representative Office: Procedure and Documents

What other difficulties may arise during the liquidation of the company?

During the war not all state authorities involved in this procedure provide registration actions. Before the war one could submit documents to any administrative service center of the territorial unit where the company was registered or to any private notary dealing with registration actions (and there were quite a few of them).

Now the documents are accepted by individual regional justice departments and some administrative service centers. However, according to our colleagues, all the time at state institutions is booked a month in advance.

We hope that in the near future the circle of entities that can carry out registration activities will again be expanded.

Despite all the complexities of the process and martial law in the country, our experts will help you resolve your issues as quickly and efficiently as possible.

If you want to liquidate a company in Ukraine safely and within the shortest possible time, don’t hesitate to contact us.

Didn’t find an answer to your question?

Everything about liquidation of the foreign company’s representative office in Ukraine here.

Publication date: 27/05/2022

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Name: Marina Losenko

Position: Associate

Education: National Aviation University

Knowledge of languages: Russian, Ukrainian

Email: [email protected]

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