Each owner of a company with a foreign registration must know not only all the subtleties of doing business in the territory of another country, its current legislation, but also must have a good understanding of the nuances of the liquidation procedure of the company. This need is due, first of all, to the importance of the possibility of significantly minimizing the loss of capital and other corporate property during the liquidation of a company.
Each country in the matter of liquidation of the business object makes different requirements to the beneficiaries (the actual owners of the company). This applies to aspects such as a package of necessary documentation, the provision of reliable information regarding the owners of the enterprise and its field of activity, etc. Knowledge of these requirements will help you to avoid various negative consequences in the form of loss of significant assets, significant losses and complex legal proceedings. Today we will take a closer look at the main nuances of the liquidation process in relation to business objects with British registration.
How is the liquidation process in the UK?
The first thing a firm must do to start a liquidation procedure is to submit a final financial report to the tax. The key point here is the mandatory requirement for the presence of a special mark “Final” in the report (original “Final”). All accounts opened with local banks are closed by the relevant employees on a mandatory basis (the main accountant is required to submit the necessary documentation to the relevant organization).
The main distinctive feature of UK law from the jurisdictions of most countries of the world is the decision to transfer the property and other assets remaining on the company’s balance sheet to the state treasury, rather than to shareholders.
If the company cooperated with creditors, then this fact can significantly complicate the procedure for its liquidation (it is required that all debts be paid off).
The beginning of the liquidation process is the filing of a specialized application to Gazette. Only those enterprises that have no tax service arrears at the time of liquidation are allowed to this operation.
Once the application has been submitted and published, the owners of the enterprise must wait a certain time. During this period, the owners of the company retain the right to make claims. According to the law, this period is 3 months. But in practice, waiting can last up to six months.
After the expiration of the aforementioned term of the company, a new label is assigned to the specialized site (Companies Registry) – proposal to strike-off. It will remain until the owners of the company receive an official notice of the liquidation of the company. As soon as the notification was received, the company was officially liquidated.
Is it possible to restore a liquidated company?
Theoretically, this can be done. According to British law, it is necessary to obtain in a local court a ruling on the inclusion of a company in the Register of Companies. But this is possible only if the lawyers of the enterprise prove the facts confirming the benefit of its renewal.
In reality, the owner of the company faces almost insurmountable difficulties, overcoming of which is in most cases unprofitable both from a financial point of view and in terms of time. Therefore, usually liquidated companies do not try to restore, but simply register a new one (this is cheaper and simpler).
Do you need help liquidating your company? Our lawyers will provide you with qualified assistance in this matter. We will prepare all the required papers, and provide you with full support at all stages of this procedure.
For more advice, contact us at the contacts listed on the site.