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Procedure of liqudation of NGOs and charities in Ukraine. Part 2

The liquidation of charitable organizations or Non-Governmental Organizations (NGOs) that act as legal entities is performed as per one and the same procedure. The main regulatory document determining the termination of their activities is the Law of Ukraine “On State Registration of Legal Entities and Individual Entrepreneurs”.

A charitable organization is liquidated by its dissolution on the basis of a decision of the governing body, which is authorized for such actions by statutory documents. The termination of the operation of a registered public organization-legal entity is carried out by dissolution by decision of the public association, which is adopted by its supreme body on the basis of the charter.

Then a liquidation commission is formed, or the governing body of a public (charitable) organization is given iits functions and powers for the implementation of the procedure for terminating the activities of a legal entity. The supreme body of the organization, in line with the charter, must also decide on the use of the financial and property assets of the organization after liquidation.

The decision on liquidation or its notarized copy is submitted to the territorial department of justice. Based on the results of the consideration of the submitted documents, the authorized body records information on the self-dissolution of the public organization in the Register of Public Associations, and the corresponding record is entered in the Unified State Register of Legal Entities and Individual Entrepreneurs. As to the charitable organization, an entry is made only to the State Register of State Register of Legal Entities and Individual Entrepreneurs..

If the submitted documents do not comply with the requirements of the legislation, the authorized body is obligated  to issue an order to refuse recognition of the decision on liquidation.

When information about the liquidation of a charitable organization or the dissolution of a public association gets into the Unified State Register of Legal Entities and Individual Entrepreneurs, the process of completing the activities of a legal entity begins. As a result, from now on, all the necessary actions are carried out by the liquidation commission.

The media should make an announcement on the liquidation of a public or charitable organization and the deadline for making claims against it. Along with this, the liquidation commission takes measures to pay off accounts receivable, terminates the activity of existing departments, dismisses employees in accordance with the Labor Code of Ukraine and closes bank accounts that will not be used for settlements on existing obligations. The liquidation commission submits reporting (for the last declared period) and primary documents to the fiscal service bodies  to carry out verification and draw up a document on the absence of debts to the funds and budgets.

Upon the expiration of the period for the presentation of creditor claims, the liquidation commission begins to form an interim liquidation balance sheet. It reflects data on available property, claims of creditors and information on their satisfaction. In the event of self-dissolution, this balance must be approved by the participants of the legal entity.

When settlements with creditors are completed, a liquidation balance sheet is formed and approved. In addition to these actions, the liquidation commission closes the accounts used in banking institutions, destroys the seal and stamps, files away the documents of the liquidated organization to the archival facility. After that, an certificate of the liquidation commission is drawn up.

After that, the liquidation commission sends the documents that are required for state registration of the termination of the legal entity to the state registrar. These are: a completed registration card for the state registration of the termination of a legal entity due to liquidation; a document from the bodies of the state fiscal service on the absence of tax and other debts, including on unified social taxes; archival certificate on the transfer of documents for storage.

Based on the provided documents, the registrar terminates the legal entity in connection with the liquidation. According to the law, the duration of this procedure should not be more than one day. Then the state registrar is obligated to provide the head of the liquidation commission with a notice on the state registration of the termination of the legal entity.

Read more about the liquidation of charitable foundations and public organizations in the first part of our material..

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