LLC liquidation

Cost of liquidation — UAH 3,000. Period — from 60 days.

Documents required

• constituent documents, including information on open bank accounts
• accounting and reporting documents
• the company seal

What the legal service includes

• preparation of the complete set of documents
• publication of announcements in the official media
• registration of the termination with the relevant district administration
• closing the bank account
• undergoing inspections and deregistration with the tax authority and the funds
• filing applications with the tax inspectorate and the social insurance fund
• obtaining documents and certificates from State bodies
• transfer of documentation with long-term retention periods to the archive
• destruction of the company seal
• entry in the Unified State Register on completion of the liquidation procedure

The documents the client receives on completion reflect every stage of the liquidation or reorganisation of the enterprise.

Forms of termination

Termination of a business entity is carried out through its reorganisation (merger, accession, division or transformation) or through liquidation — by decision of the owner or owners or of the bodies authorised by them, by decision of other persons (founders or their legal successors) and, in the cases provided for by law, by court decision (Art. 59 of the Commercial Code of Ukraine).

Liquidation of a legal entity may be voluntary or compulsory. Grounds for voluntary liquidation include a decision of the participants or of the bodies authorised for that purpose, and the expiry of the period for which the legal entity was created.

Grounds for liquidation

Grounds for voluntary liquidation of a legal entity may include:

• a decision of the participants or of the bodies authorised to take it
• expiry of the period for which the legal entity was created
• achievement of the purpose for which it was created — on this ground, for example, consumer cooperatives may be liquidated
• cancellation of its State registration in the cases provided for by law

On liquidation a legal entity ceases its activity without legal succession. The property of a liquidated legal entity does not pass to other entities as a single complex.

Procedure and timeframes

The participants (or the owner) who have taken the decision to terminate the legal entity are obliged, within three business days of that decision, to notify the State registration authority in writing.

They then appoint a termination commission (liquidation commission), its chairman or a liquidator, and establish the procedure and the period within which creditors may submit their claims — not less than two months. The functions of the commission may be entrusted to the management body of the legal entity.

The liquidation of a company is carried out by the liquidation commission appointed by it; from the day the commission is appointed, the powers to manage the company's affairs pass to it (Art. 20 of the Law of Ukraine "On Business Associations").

The period for creditors to submit their claims to the legal entity being terminated may not be less than two and not more than six months from the day of publication of the notice of the decision on termination.

The liquidation of a company is deemed completed, and the company is deemed to have ceased its activity, from the moment the corresponding entry is made in the State register.