Liquidation of an entity is a procedure according to which the company's activities are terminated. Also, the process prohibits the transfer of property right of the business to third parties. Liquidation of entities is carried out on voluntary basis or in judicial order.
This is a complex process involving both the execution of documents and the payment of all duties and taxes. Even experienced businessmen cannot deal with this alone.
Reasons for liquidation of the company:
Termination of activities (voluntary)
Termination of activities on voluntary basis is carried out by the agreement of the incorporators (participants), beneficiaries or shareholders of the company.
Achievement of the purpose
The liquidation is made due to the achievement of the purpose for which the organization was incorporated
Court Decision
In court, the procedure is carried out by the decision of the authorities of the Ministry of Taxes or on the basis of one or more articles of the Civil Code of the Republic of Azerbaijan
Expiration of the period
The process can be applied due to the expiration of the period for which the entity was established
Termination of activities (Civil Code)
Termination of activities is carried out on the basis of the regulations of the Civil Code of Azerbaijan .
Company bankrupt
Another case of termination of activities - the company is declared bankrupt
The liquidation of an entity begins with the placing an advertising in the newspaper and the appointment of the liquidation commission.
Ordering the service of liquidation of entities is perfumed through our legal portal. We work with the most difficult situations and we guarantee that we will completely settle the issues set forth. By applying to us you will not even feel the painful process of liquidation.
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Frequently asked questions
If you have specific questions, you can contact us for consultation
Cancellation of entrepreneurial activity (individual entrepreneur) includes the following stages:
- Termination of activity
- An entrepreneur decides to close a business and submits a notification to the State Tax Department of the Ministry of Economy of Azerbaijan.
- Submission of an application for liquidation
- An official application is sent to the State Tax Department of the Ministry of Economy of Azerbaijan.
- Settlement with the budget
- Full payment of taxes, fees and other obligations.
- Closing bank accounts.
- Inspections and closure of entrepreneurship
- The STS checks for debts.
- After completing all procedures, the entrepreneur is excluded from the register of taxpayers.
On average, the procedure takes 1-3 months, depending on the presence of debts and inspections.
Liquidation of a legal entity (LLC, CJSC, etc.) takes place in several stages:
- Making a decision on liquidation
- The company's participants make a decision on liquidation, formalize it with a notary, and appoint a liquidation commission.
- Registration of liquidation in government agencies
- Submission of a notification to the State Tax Department and the Ministry of Justice on the start of liquidation.
- Publication of an announcement of liquidation in official sources.
- Financial and tax calculations
- Preparation of a liquidation balance sheet.
- Full repayment of debts to the budget, employees, contractors.
- Passing inspections by government agencies
- Government agencies (tax, social security, customs) conduct a final inspection.
- Closing bank accounts and submitting reports
- Closing corporate bank accounts.
- Submission of final reports.
- Official exclusion from the register
- After all checks, the legal entity is excluded from the register.
The entire process can take 6-12 months, depending on the complexity of the checks and the presence of debts.
Yes, our company provides legal support to clients at all stages of liquidation, including:
- Preparation of documents for inspections by the tax authorities, the Social Fund and other agencies.
- Internal audit before inspections – identification and elimination of possible errors in reporting.
- Participation in negotiations and settlement of claims by government agencies.
- Appealing unjustified fines in administrative and judicial proceedings.
We minimize risks and speed up the liquidation process.
The storage periods for accounting and legal documents in Azerbaijan depend on their type:
- Accounting and tax reporting - 5 years (according to the Tax Code).
- Primary accounting documents (invoices, bills, contracts) - 5 years.
- Employment contracts, personnel documentation - 75 years (applies to work books and personal files of employees).
- Documents on export-import operations - 5 years.
Documents must be stored in their original form in the company's archive or with the liquidator.
Documents can be destroyed only after the expiration of the storage period and in the absence of claims from government agencies. The procedure includes:
- Creation of a destruction commission - appointed by the company's management or liquidator.
- Drawing up a write-off report - the names of documents and the reasons for their destruction are recorded.
- Physical destruction - burning, shredding or transfer to specialized archival organizations.
The liquidator or company must record the fact of document destruction in an official report.
After the completion of the liquidation, the seal of the legal entity must be destroyed. The process includes:
- Compilation of an act on the destruction of the seal - the date, basis and method of destruction are indicated.
- Physical destruction – most often, the print is burned or torn into small pieces.
- The report to the tax authorities - the document on the liquidation of the seal is attached to the final report on the liquidation of the company.
Thus, after the completion of the liquidation of the legal entity, its seal can no longer be used.
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