Liquidation of CJSC

The liquidation of a CJSC on the territory of the Republic of Belarus is a multi–stage and complex procedure that, without qualified legal support, can take a lot of effort, time and material resources. The reasons for the termination of commercial activity can be a variety of factors. Among them is the voluntary termination of the company’s work, and on the basis of a court decision. Also, for the formal closure of a joint-stock company, but the continuation of commercial activity, it is possible to conduct a procedure for the merger of assets and shares, reorganization or transformation into a joint-stock company, a private unitary enterprise or a production cooperative. Each individual case requires an individual approach and a thorough analysis of specific conditions, reasons for termination of activity.

In what cases is the liquidation of a joint-stock company possible?

Subject to the voluntary closure of the joint-stock company, confirmation of the relevant decision of the Board of Directors is required. It is approved during a scheduled or extraordinary meeting. According to the decision of the courts , the liquidation of a joint-stock company may be compulsory in the following cases:

• Implementation of the goals and objectives that were set when creating the enterprise;
• The end of the registration period;
• Lack of permits, licenses, certificates for the provision of specific services or the implementation of specific activities;
• Violation of the procedure for the formation of the authorized fund;
• Repeated violations of the legislation of the Republic of Belarus;
• Change in the value of net assets.

Also, the liquidation of a CJSC may be suspended as a result of the bankruptcy of a legal entity. Another reason why it is possible to close an enterprise by a decision of an economic court or a registration authority is the failure to carry out business activities for 24 months. This is confirmed by the lack of profit, commercial transactions, tax payments and deductions to the budget.

Standard steps of the procedure

To stop the commercial activity of an enterprise, it is not enough to simply stop working, providing services or opening up. The very procedure of liquidation of the CJSC implies the phased implementation of approved procedures:

• Making a decision on termination of activity or obtaining a corresponding decision of the economic court, registration authority;
• Transfer of documentation to the Ministry of Justice, tax and customs authorities, Social Protection Fund;
• Determination and appointment of the liquidation commission, which establishes the procedure and terms of the procedure;
• Payment of debts to employees and persons who have suffered harm to life or health, creditors and debtors, full settlement of payments to budgetary and non-budgetary funds;
• Provision of certificates of absence of debts and obligations, as well as legal seals to the registering authority;
• Preparation of the final balance sheet of a closed joint-stock company.

The whole procedure can last from 2-3 months to a year or more. At the same time, it is extremely important to submit all the necessary documents, reports and certificates in a timely manner. Otherwise, the risk of imposing penalties increases.

Liquidation of CJSC in Belarus

In order for the liquidation of the CJSC to take place as quickly as possible and not to the detriment of the entrepreneur’s reputation, it is strongly recommended to trust experienced specialists in its implementation. LLC «Borius Consulting» provides a full range of legal services for business at a high professional level. With the assistance of experts, the closure of the company will be much faster and easier, which will provide significant savings in time and material resources.