Closing a company, how does it happen? What is the legal procedure? What needs to be done and how long does it take? Can I contact a lawyer in Sofia or a lawyer in Plovdiv? We will briefly consider these and other questions in the article.
The liquidation of a commercial company leads to the cessation of operations, satisfaction of creditors and distribution of the remaining assets among the partners. In this article, we will look at the procedure for liquidating a company, the necessary steps and fees due, as well as why it is important to use the services of a commercial law attorney.
What is the liquidation of a commercial company?
Liquidation is a process in which the activities of the respective commercial entity are terminated. The main goal is to satisfy creditors, to complete all current transactions and relationships, and to distribute the remaining assets among the partners according to their shares in the capital. After these steps, the company is deleted as a legal entity.
Types of Liquidation
Liquidation of commercial companies can be voluntary or involuntary. Here we will consider voluntary liquidation. Voluntary liquidation is initiated by the will of the partners.
Procedure for closing a company – voluntary liquidation of a commercial company
The voluntary liquidation procedure is a process that requires the implementation of multiple steps and acts by various entities. It can be divided into three main stages:
The first stage begins with a decision to terminate the company’s activities. In the case of an EOOD, the decision is made by the sole owner of the capital, while in the case of an OOD, this is done by the General Meeting of Partners with a majority of 3/4 of the capital, if the partnership agreement does not provide for a larger majority. Then, a decision is made to appoint a liquidator. This decision is made together with the decision to terminate the company and is announced in the Commercial Register. A notarized consent with a specimen signature of the appointed liquidator is required. Also, the liquidators must notify the NRA of the initiated liquidation procedure by submitting a declaration. The NRA issues an act within 60 days, certifying the notification.
The second stage includes publicity and notification of creditors. The liquidators must notify all known creditors by written invitations and a notice in the Commercial Register. Creditors have six months to file their claims. If no claims are filed or the debts are settled, the liquidation can proceed.
The third and final stage is the deletion of the company from the Commercial Register. The liquidators prepare a balance sheet and a report at the time of the company’s dissolution. They then submit an application to the Commercial Register for the deletion of the company. The application is approved after checking for compliance with the law and the company is deleted as a legal entity.
Liquidators’ Duties
Liquidators have important duties, which include completing the company’s current transactions, collecting receivables, converting remaining assets into cash, and satisfying creditors. They may enter into new transactions only if this is necessary for the liquidation.
Company Closure Fees
There are two main acts that are subject to registration and the corresponding fees in the liquidation process. The fee for registering circumstances regarding termination and liquidation (application No. B6) is 40 BGN at the counter and 20 BGN electronically. The fee for announcing the invitation to creditors (application No. D1) is also 40 BGN at the counter and 20 BGN electronically.
Why is it important to use the services of a commercial law attorney?
Closing a company is a time-consuming and complex process that requires interaction with multiple government agencies. Using a commercial lawyer can provide full-spectrum legal assistance from the beginning to the end of the process, drawing up the necessary documents and protecting the interests of clients. This saves time and reduces the risk of refusal of deletion.
Liquidation of a company is a complex and multi-stage process, requiring attention to detail and interaction with multiple institutions. To ensure the successful completion of the procedure, it is advisable to use the services of a commercial lawyer. You can book an appointment for a consultation with a lawyer in Sofia and a lawyer in Plovdiv on issues of company liquidation. You can receive assistance and representation from a lawyer in Sofia and a lawyer in Plovdiv to complete company liquidation proceedings.
You can contact us for consultation and assistance on all matters related to commercial law. Our lawyers have extensive experience in corporate law and corporate relations.
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