Liquidation of the company in the Republic of Belarus: to be, or not to be?

There are two ways to close the company in the Republic of Belarus:

  1. As a result of liquidation based on the decision of the owner (the general meeting) on liquidation.
  2. As a result of bankruptcy of the company under the court decision, if the company cannot pay off debts. The representative of the company in this process is a crisis manager, which is appointed by the court.

The process of liquidation based on the decision of the owner (the general meeting) on liquidation consists of two stages:

  1. Preparations for the liquidation of the company, which ends with the official decision of the owner (the general meeting) on liquidation. The representative of the company at this stage is CEO. 
    • REVERA consults and drafts documents to prepare the company to the liquidation.   
       
  2. The liquidation process, which ends with the exclusion of the company from Unified State Register of legal entities and individual entrepreneurs of the Republic of Belarus. The representative of the company at this stage is liquidator. 
    • REVERA acts as a liquidator of the company at this stage. 

Preparations for the liquidation

As a general rule, preparations for the liquidation includes:

  1. The analysis of company’s financial condition and estimating the probability of bankruptcy.
  2. Drafting documents on the dismissal of employees.
  3. The sale of property. 
  4. Transfer of intellectual property rights. 
  5. Collection of receivables.
  6. Settlements with the creditors. 
  7. Ceasing the High-Tech Park residency (if applicable).
  8. Drafting the detailed plan of liquidation.
  9. Drafting the decision on liquidation. 
     

The legal features of the liquidation process

  1. The term for the liquidation cannot exceed 9 months and can be extended to 12 months. The liquidation process may take less time, if the company concludes liquidation audit contract. 
  2. The company is forbidden to operate the business after the decision on liquidation.
  3. If the company did not sell property before the decision on liquidation, it can be sold by liquidator only at auction. It increases the term of liquidation process. 
  4. The liquidator dispose of money in the account of the company and sign all documents. Therefore, as a general rule, the owner (shareholders) appoints a law firm specializing in the liquidation process as a liquidator of the company.    
  5. After settlements with the creditors, the liquidator transfer the rest of the money and property of the company, which was not sold, to the owner (shareholders). 

 


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