How can a company be liquidated in Ukraine?
A Ukrainian company may be liquidated voluntary, as a decision of its shareholders or compulsory, as a decision of a competent court at the request of creditors, and in certain cases, of shareholders.
The reasons why the company is liquidated are varied, from the expiration of the availability of the company, posted in the articles of association to the impossibility of paying its debts (bankruptcy).
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What are the steps for company liquidation in Ukraine?
The voluntary liquidation of a comapny in Ukraine is decided by a majority of shareholders, during a general meeting. Besides the decision of liquidation, the person in charge with all the operations related to it must be appointed. It’s known as liquidator and has the following attributions: notify the debtors that own unpaid debts to the company, post an announcement in the newspapers regarding the way and terms the creditors’ claims can be deposited, prepare statements with the company’s assets and an initial balance sheet and perform audits. The statements and the balance sheet must be presented in front of the general meeting specially convened for this.
The decision of liquidation of a Ukrainian company must be recorded at the Register no later than three days since the general meeting where the decision was taken. Besides the decision, all the liquidator’s details have to be registered. The registration of the decision and the liquidator’s details are the responsibility of the person in charge with the liquidation.
An official add in the newspaper regarding the Ukrainian company liquidation has to be recorded by the Register. As a result, the company cannot change its Charter or Articles of Association no more.
After receiving the claims from the creditors, it has to be covered in full, followed by the payment of the pending salaries and other debts (including those related to the state treasury).
The State Tax Administration, the State Pension Fund, Temporary Disability Insurance Fund, the Unemployment Insurance Fund, the Industrial Accident and Occupational Health Insurance Fund have to be asked to perform an audit. These authorities must issue certificates of confirmation that the company doesn’t own any pending liabilities. As a result, the company’s bank accounts are closed and the company’s stamp is destroyed.
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De-registration from the customs authority has to be performed if necessary.
After taking all the above steps, the liquidator of a Ukrainian company must convene a last general meeting where a report regarding its activities and a final notarized and signed balance sheet must be presented.
The company’s acts are not destroyed but archived at the State’s archive.
The last step of liquidating a company in Ukraine is canceling the company from the State Registrar after declaring that all the above stages were taken.
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How long does it take to liquidate a company in Ukraine?
Depending on the size of the company and the complexity of its debts, the process of liquidation of a Ukrainian company may take several years before completion.
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