Alternative liquidation of two LLCs in Ukraine: real experience

A client who owns two businesses in Lviv and the Lviv region approached us. In his opinion, these businesses have already fulfilled their mission and should be closed. He understood that the formal procedure for terminating legal entities can be time-consuming. However, due to personal reasons, he needed to complete the process as quickly as possible. Therefore, in this case, an alternative liquidation seemed to be the ideal option. However, he was concerned about whether we could handle this in Lviv and the Lviv region since our company is physically located in Kyiv.

We reassured the client, dispelling any doubts he had, and assured him that the location was not a hindrance for us. We provided the following list of services.

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Stages of alternative liquidation of an LLC in Lviv

Buyer search. We conduct all actions strictly within the legal framework, so it was crucial to find a buyer who is legally clean and reputable. We work with such buyers. The client also wanted to ensure that the company does not fall into unscrupulous hands. Although, after selling the company, one could theoretically forget about it, there are cases where new owners sign documents retrospectively. While the illegitimacy of such actions can be proven, it involves unnecessary complications. Additionally, it was essential to have two different buyers for each company, as handing both companies to the same individual was not desired, and the chosen approach was considered safer. Therefore, we found different buyers for each company.

Conducting registration procedures. Since the buyers were non-local (not from Lviv), the notarization and registration had to be done in Lviv. Careful planning and coordination with the notary were necessary to bring all parties together, allowing them to sign all required documents in one meeting. We handled this process meticulously.

Handing over company documents to the new owners. his step was of utmost importance as it involved documenting the transfer of accounting records and the company seal to the new owners, specifically to the new manager. We prepared a handover protocol in duplicate and signed it together with the new manager.

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Other factors to consider when organizing alternative liquidation in Lviv

• Changing the company's address: If the company you're transferring is currently registered at one of the founder's residential addresses, it should be relocated and the address updated. The choice of the new address depends on your specific goals. For instance, our client suggested moving the company to another region, specifically to a town of urban type. We explained that in such small towns, there are usually fewer legal entities, making it easier to navigate the local business environment. However, if you wish to avoid drawing immediate attention as a new and intriguing entity, it might be more advantageous to move to a place where your company would be less noticeable. Mega-cities, with a high concentration of economic entities, can be a preferable option.
• Changing contact information: It's worth considering whether to update the contact information or not. On one hand, it makes sense that with a change in ownership, the contact details of responsible individuals should also change. On the other hand, maintaining the existing contact information could allow state authorities to reach out in case of inquiries, keeping you informed about the company's affairs.
• Withdrawing assets that you don't want to sell along with corporate rights. When transferring an LLC to new owners, everything on its balance sheet is typically included in the transfer. If there are specific assets that you do not wish to transfer, proper accounting procedures should be conducted during the company's liquidation to withdraw those assets if necessary.

If you need assistance with this service or have any questions, please don't hesitate to reach out to our staff! We approach every task with a high level of responsibility and will find the most effective solutions for you, regardless of geographical boundaries.

For information on the cost of alternative liquidation, click here.

Also, feel free to read our related materials:

Handling company assets during liquidation

Selling (liquidating) a company during wartime in Ukraine

Specifics of terminating the activities of a legal entity by the owner's decision