How to Close and Liquidate a Сharitable Foundation in Ukraine?
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Recently we were contacted by a Client, who was the head and the only member of the Charitable Foundation and wanted to carry out the liquidation procedure within the shortest possible time, since he was going to move abroad.
However, the liquidation of a legal entity is a multi-stage, complex and, as a rule, a long procedure, which has many subtle aspects. Therefore, our Client wanted to know the exact period and price of the charitable foundation liquidation, as well as whether it is possible to somehow reduce the time or even carry out the liquidation procedure without him.
We offered the Client several options most comfortable for him, among which was the liquidation of a charitable foundation in Kyiv on a turnkey basis and alternative liquidation of the foundation.
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Procedure for liquidation of a charitable foundation in Ukraine
Stage 1: Preparation and submission of documents to the registrar.
The founders (memberss) of the charitable foundation (CF) decide to liquidate the CF, and draw up and record the decision on the liquidation in the minutes of the general meeting of members, as well as appoint a liquidation commission (liquidator).
After that the state registration authority shall be notified about the start of the liquidation process. At this stage information about the status of the CF in the process of termination must be recorded in the Unified State Register (USR).
Preliminarily our lawyers analyze the documents of the foundation and its state to optimize the risks for the members during the liquidation.
Stage 2: Notification of controlling authorities about the start of the liquidation procedure.
The purpose of this stage is to carry out inspections and obtain information on outstanding taxes, fees, single social security tax, insurance fees to the Pension Fund of Ukraine, social insurance funds.
The liquidation commission (liquidator) submits the report for the last declaring period and the basic documents to the state tax authorities for audit purposes.
The State Tax Service of Ukraine at the location of the foundation takes the necessary verification measures, and if no debts are detected, issues a bypass list. After that, in order to exchange information with the USR, notifies the latter that there are no objections to the state registration of the termination of a legal entity.
Please note! You should initiate unscheduled inspections related to liquidation by yourself by contacting the above mentioned agencies - this will significantly speed up the process. This step is the most time-consuming, because the controlling authorities do not hurry to conduct inspections within the specified period.
During liquidation support our lawyers are constantly in touch with controlling authorities, thus speeding up the inspection procedure.
Stage 3: Settlement with creditors.
For the next stage of the CF liquidation, it is necessary to identify creditors and inform them about the initiation of the liquidation procedure.
Having analyzed the CF’s accounting data and documentation, it is necessary to independently identify creditors, send them proper notices and proposals for presenting their claims.
At the same time the liquidation commission (liquidator) implements the necessary measures to close the accounts receivable, terminates the activities of branches, departments, representative offices and dismisses employees in accordance with the Labor Code of Ukraine, and closes the bank accounts.
It is worth knowing that settlements with creditors also include payment of all taxes, expenses, fees, unified social contributions, as well as insurance payments. Certificates about the absence of such debts are issued.
Once all necessary procedures with creditors are completed, the commission (liquidator) prepares a liquidation balance sheet, which is approved by the founder (members). This document is submitted to the taxpayer service center at the place of the CF registration.
Stage 4: Finality.
The documents of long-term storage must be sent to the state archive, and you will be issued an appropriate certificate.
Once all the previous stages are passed, certificates and other necessary documents are obtained, the liquidation commission (liquidator) provides the state registrar with the documentation for the state registration procedure of termination of a legal entity. Namely:
a completed registration card for the state registration of the termination of a legal entity;
a document from the tax authorities about the absence of tax and other debts, including the single social security tax;
an archive certificate on the transfer of documents for storage.
The final stage will be the entry of the termination of the legal entity in the Unified State Register. The liquidator (chairman of the liquidation commission) receives a notice on the state registration of the termination of the legal entity.
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Alternative liquidation of a charitable foundation in Ukraine
For those entrepreneurs who want to liquidate a charitable foundation as quickly as possible, we recommend the procedure of alternative liquidation of the CF. The liquidation procedure does not exceed 4 business days.
The new owner is another person who deals with its further closure, and the former owner is no longer related to it and is not recorded in the database of the Unified State Register.
The cost of this procedure is slightly higher than the standard liquidation, you can choose the best option on our service page.
Legal services for the liquidation of a charitable foundation in Ukraine
Our lawyers offer you the following services:
Analyzing the Client’s situation and suggesting the best legal solution;
Legal consulting on the possible ways of liquidating a charitable foundation and its procedure;
Full legal support of the procedure of charitable foundation liquidation;
Legal support during the inspection of the liquidation in the tax and other authorities;
Assistance with the organization of the CF liquidation stages;
Conducting an alternative liquidation of a charitable foundation, if necessary.
Do you want to liquidate a charitable foundation in Ukraine? Don’t hesitate to contact us! We will accompany all the stages of the procedure, and if you wish, we will fully undertake the liquidation of a charitable foundation.
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