In the life cycle of several companies, sometimes there is a period when the owners are thinking about liquidation. Despite all the advantages that residency in the Hi-Tech Park provides to IT companies, the liquidation of companies remains relevant. Liquidation can be caused by various reasons, from economic difficulties to a change in the strategic direction of the business. The liquidation procedure of each company has its characteristics, but we have tried to highlight the general rules of the liquidation process. In this article, we will consider the specifics of the liquidation of resident companies of the Hi-Tech Park (HTP) and the consequences that this may have for entrepreneurs.
Why is it Important to Know about the Specifics of the Liquidation of HTP Resident Companies
It is important to know the specifics of the liquidation of IT companies – residents of the Hi-Tech Park (HTP) for several reasons:
1. Legal Aspects
The liquidation of a company includes a number of legal procedures and requirements, which may vary significantly depending on the status of the company and its jurisdiction. Understanding these features will help to avoid legal mistakes and minimize risks.
2. Financial Implications
Liquidation can have significant financial consequences for the founders, shareholders and employees. Knowing the specifics of the process will allow you to assess better the possible costs and consequences, which is important for making informed decisions.
3. Reputation Management
The liquidation process may affect the company’s reputation in the industry. Understanding the stages and causes of liquidation will help you better manage your image during and after the business closure process.
4. Experience with Other Companies
Analyzing the liquidation cases of other IT companies will help you learn useful lessons and warnings, avoid common mistakes, and choose the right strategy to solve difficulties.
5. Ecosystem Support
Understanding the causes and specifics of company liquidation can help organizations supporting startups and small businesses develop more effective programs and initiatives for helping companies through difficult times.
6. Preparing for Possible Changes
It is important to be prepared for different scenarios in a rapidly changing technological environment. Knowledge of the liquidation process will help entrepreneurs plan their steps if business transformation is necessary.
7. Investor Awareness
For investors, knowledge about the specifics of liquidating companies in HTP will help them better assess risks and make informed decisions about investing in certain startups.
Thus, understanding the specifics of liquidating IT companies in the Hi-Tech Park not only contributes to effective business management but also helps to strengthen the high-tech ecosystem as a whole, creating a more sustainable and adaptive business environment.
What does “Liquidation” Mean, and Who Can Liquidate the Company
The company’s liquidation confirms the exclusion of this company from the Unified State Register of Legal Entities and Individual Entrepreneurs. You can check the company’s status (operating or liquidated or in the liquidation process) on the USR website https://egr.gov.by/egrn/index .jsp?content=Find. Liquidation of the company is possible on the initiative of the registering authority (for example, when the company does not operate for a long time) and by the owners’ decision.
We will consider the specifics of the company’s liquidation based on the owners’ decision.
Consequences of the Liquidation of the Company
The liquidated company is deprived of the right to conclude and execute contracts with business partners, cannot hire staff, issue power of attorney and apply to government agencies on its behalf, and generally ceases to exist as a business entity. The liquidated resident company of the Hi-Tech Park lost its HTP resident status at the moment of liquidation.
As a general rule, the founders of a company in liquidation cannot open new companies until the company is completely liquidated. However, this rule does not apply to HTP residents. Companies and individual entrepreneurs who are residents of the Hi-Tech Park can open new businesses until the end of the liquidation process of the companies they own.
The Term of Liquidation of the Company
The decision on liquidation prescribes the company’s liquidation term. According to the state’s requirements, the company must be liquidated within nine months after the decision on liquidation. However, the owners can extend the company’s liquidation period to 12 months.
During the liquidation process, the company can only make transactions on bank accounts related to its liquidation.
The Decision of the Owners to Liquidate the Company
The decision of the owners to liquidate the company is a document signed by the owners that contains the procedure for the liquidation of the company. Usually, the decision prescribes the liquidation process and deadlines and appoints those responsible for each liquidation stage on the need for an audit. The decision is made to appoint the company’s liquidator, usually the head. You can appoint a liquidation commission. The formation of this commission has its peculiarities. In particular, when a company has accounts payable, the head of the company is not appointed chairman of the liquidation commission.
After the company’s owners decide to liquidate, the authority to manage the company passes to the liquidator or the chairman of the liquidation commission if one has been created.
The decision on liquidation is sent to the government agency that registered the company and to the Secretariat of the Supervisory Board of the Hi-Tech Park within ten working days of its making.
When the Owners of the Company are Obliged to Decide on its Liquidation
The owners of an IT company are obliged to decide on the liquidation of the company when:
1. The company is liquidated – the sole founder of the IT company.
2. The company has not been operating for two years.
When the Owners will Not be Able to Liquidate the Company
The company’s owners will not be able to go into liquidation when the company is in terms of inspections carried out by regulatory authorities. In this case, the company’s liquidation will have to be postponed until the end of the audit.
When a company has grounds for bankruptcy (there is a problem debt to creditors), it will not be possible to go into liquidation; it is necessary to carry out bankruptcy proceedings.
Therefore, before deciding to liquidate a company, it is necessary to check the plan of inspections by government agencies and conduct an inventory of accounts payable and receivables. To do this, it is best to contact experienced lawyers for company liquidation.
Publication of Information About the Liquidation of the Company
In Belarus, it is customary to post information about the company’s decision to liquidate on the Justice of Belarus magazine website. This information indicates the procedure and period during which creditors can submit their claims to the liquidated company. The minimum period for filing creditors’ claims is two months from the publication date of the liquidation information.
This information is published as a paid service: first, payment must be made, after which information about the liquidation is published on the journal’s website. In addition, the paper version of the liquidation publication appears in the printed supplement to the journal after it is posted online.
Sending Information on Liquidation to the Registration Authority
An application for the company’s liquidation and the owners’ decision on liquidation must be sent to the government agency that registered the company. A sample application can be obtained from the registration authority or liquidation lawyers. It is possible to send liquidation documents electronically to some registration authorities.
The foreign owner of the HTP resident company being liquidated needs to obtain an extract from the trade register in his country in advance, legalize it and translate it into Russian. This document must also be submitted to the registration authority when the company is liquidated.
In addition to these documents, a document on payment for the publication of the liquidation in the journal and a document confirming the authority of the person who personally submits the package of documents are sent to the registration authority.
The registration authority sends a notification of the IT company’s liquidation and interested government agencies to the Ministry of Justice within three days to enter information into the Unified State Register.
Sending Information to the Tax Service
After the package of liquidation documents has been sent to the registration authority, the liquidated company must interact with the tax inspectorate.
Tax Return
Within five working days after transferring information about the liquidation to the registration authority, you must submit a declaration to the tax inspectorate.
If you need to pay taxes, you must pay off the budget within five days of submitting your tax return.
Usually, the tax inspectorate audits the company within 30 days after receiving a notice of liquidation from the registering authority unless a voluntary audit has been conducted.
To prepare for a tax audit, it is necessary:
- Analyze the availability of accounting documents and the correctness of their registration.
- Collect all documents for the entire tax period, which the tax inspectorate will check.
- Try to recover the lost documents, if necessary.
Interim Liquidation Balance Sheet
During the liquidation period, determined in the decision, an interim liquidation balance sheet is drawn up, which the tax service requests to provide.
Completion of the Liquidation of the Company
When all issues related to the payment of taxes, disposal of the company’s property, repayment of debts, and employment or dismissal of its employees are completed, an inventory is carried out, and a final liquidation balance sheet is drawn up. The company’s owners approve the balance sheet.
The liquidation balance sheet and the company’s original certificate of state registration are transferred to the registration authority.
When a company is liquidated and must pay taxes (there were objects of taxation), it must file a tax return no later than ten days before transferring the liquidation balance sheet to the registration authority. In this case, taxes must be paid within five days of filing the tax return.
The date of liquidation of the company is considered to be the date on which the registration authority decided to place an entry on the liquidation of the company in the Unified State Register.
Contact us
If you have any questions or disputes regarding the liquidation procedure of the company in Belarus, we will be happy to help! Our long-term experience in divident payment will help you resolve any disputes in this area.
- +37529366-44-77 (WhatsApp, Viber, Telegram);
- info@ambylegal.by.
