The process of disqualifying a legal entity from incorporation in Belarus is known as the liquidation of a legal entity. Only such a conclusion to the dissolution of a business may be deemed suitable. The founders frequently feel content with the fact that they liquidate the business, after which they stop remembering it even existed. This is fundamentally incorrect since a legal entity is not deemed to have totally ceased to exist until it is excluded from the USSR. As a result, the creators of such a legal body will still be prohibited from founding new businesses.
The procedure involved
The liquidation procedure in Belarus is quite simple. Audits are not performed as part of the involuntary (simplified)liquidation of legal entities. The so-called streamlined, but nevertheless involuntary, liquidation is one that is decided by the registering authority.
Choosing a liquidator and firm liquidation
A person or a legal organization may act as the liquidator of a legal entity. A person with higher education and at least three years of experience working as management or specialist qualify as a liquidator. A legal entity must have three or more employees who comply with the requirements. The former owner or founder of the business is unable to serve as a liquidator if there are debts. Only those with a legal services license are permitted to provide the compensated services of a liquidator.
Choosing to dissolve the business in Minsk
The founders of a business entity must agree unanimously to liquidate the company. A protocol is created for such a choice in a business organization. It must include details on the designated liquidator as well as the timeline and process for the organization’s liquidation in the Republic of Belarus. The 9-month liquidation deadline may be extended by an additional 3 months.
The liquidator applies to the registration authority for permission to dissolve the organization
The liquidator who received the enterprise’s papers and property must personally submit to the registration authority a declaration of the established form and the founders’ decision to dissolve the business. Ten days after the day the liquidation decision was made, he had to do this. On the website of the journal “Justice of Belarus,” the liquidator posts a publication about the liquidation of the business. Additionally, he informs his known creditors. Liability may be transferred to a liquidator who has disregarded this duty. Nevertheless, in reality. It is difficult to demonstrate what the liquidator knew but failed to inform the creditor of. As a result, businesses must independently check counterparties for liquidation. Right now, it is possible to do this without using paid services by using open sources on the Internet.
Receivables collection for the company that has been liquidated
In the Republic of Belarus, the dissolution of an organization does not indicate that the rights and duties of a legal entity have legal successors. Therefore, it is important to keep in mind that all accounts receivable of a legal entity will be deemed extinguished following exclusion from the USR because the legal relationship on which they were founded ended as a result of one of the parties liquidation. Therefore, if it is not possible to collect until the time of exclusion from the USSR and you do not want to “forget” the debts of the defunct company, you must assign the equivalent debt to affiliates who will carry on with their business. Receivables from a subsidiary can include: be withdrawn by the originator from economic management.
Taking into account creditors’ demands
The liquidator should not consider claims that were not disclosed during the company’s liquidation process when creating the register of creditors’ claims. Two calendar months have passed since the company’s liquidation notification before claims may be filed. The liquidator creates an interim liquidation balance sheet after two months based on the conditions outlined and the company’s current assets. It is determined whether the firm can pay all creditors at the expense of the existing property based on the results of constructing this balance sheet. Following the approval of the interim liquidation balance sheet, accounts with declared creditors may not always be able to be settled. The liquidator then needs to submit a petition for bankruptcy filed with the economic court. It’s a prevalent misperception that declaring bankruptcy is not worthwhile if there is only a modest amount of debt. The smallest unpaid creditor claim might serve as the foundation for filing for bankruptcy. If this scenario is ignored, the liquidator and the company’s founders could be held partially accountable. As a result, it makes more sense to use personal cash to pay off small-scale obligations.
