Company Dissolution & Liquidation Service
Company dissolution, which is also known as a way of closing down a company by removing its name from the official registration.
The dissolution of a company is one of the most tedious processes you will encounter as a business person.
However, the success of a business depends on many factors. Such as, the uniqueness and quality of product and service. Also, the ability to stand out from competitors.
In order to dissolve a company, it must go through a liquidation process. In other words, liquidation is the process through which company’s assets and liabilities are redistributed. Moreover, it is the only way for companies to end their legal duration.
The Process Of Company Dissolution
1. Calculate and process the final payment of all employees. After that, issue a dismissal decision.
2. Then, submit the dissolution document to the tax authority.
3. After that, it is time to prepare the tax termination report for dissolution.
4. Moreover, if the company has multiple branches it will close down.
5. After that, terminate company’s projects and submit a notice to HCMC Investment Department.
6. Obtain the company seal withdrawal certificate (if any). And, wait for the result.
Top 3 Advantages Of Dissolution Service
Benefits & Drawbacks Of Liquidation Service
1. Liquidation service is characterized in the law and it’s anything but a simple cycle.
2. In the event of liquidation, investors and partners get their inclinations back rapidly.
3. The court selects a vendor and the outlet assumes control over every duty of the organization. Therefore, no more obligations regarding chiefs.
4. In case, dissolution takes place, the court will manage the entire cycle.
5. Primarily, the organization loses its character. Therefore, no liabilities.
6. Exchanging organization loses its character totally.
7. In liquidation the organization with the deficiency of its character loses all its generosity, scholarly properties, licenses, bonds.
8. On the arrangement of vendor, other related organizations can’t get/purchase resources of exchanging organization.
9. The exchanging organization no longer has the ability to discard its property.
10. If there should arise an occurrence of liquidation the selling organization may get lower esteem than anticipated for resources.
Liquidation is closure of an organization. Additionally, this turns the resources of an organization into cash. Such as, this interaction makes a money related asset. Through which, an organization pay its obligations, extraordinary bills, and partitions the rest of circulates among accomplices, or some other financial backers. However, a recipient might be designated to screen such a conveyance cycle of resources (known as “Vendor”).
FAQ For Company Dissolution
What is a company voluntary dissolution?
There are two types of voluntary corporate liquidation. Firstly, members will voluntarily Liquidate (MVL). Which, occurs when a firm is solvent but its directors have decided to close it down.
Secondly, Creditors Voluntary Liquidation. Which, occurs when a firm becomes insolvent and the directors opt to liquidate it in order to return any remaining value to the creditors.
What is the Company liquidation process?
The process is that, the company ceases to trade, the assets are sold off and then the value is returned to the creditors in line. However, it’s not as simple as it sounds.
How long does company dissolution take?
A large company may take years. However, a small company that chooses to go through a members voluntary dissolution may just take a few months.
Can a company going through dissolution still trade?
No. Because, a company in dissolution is already wounding up, and trade would just add to its debt.
Can a company survive dissolution?
In general, a dissolution procedure signifies a company’s demise. The process can stop in rare circumstances, but that is highly improbable.
How do I apply for company dissolution?
All you have to do to apply for company dissolution is contact us. And, we will do the rest for you.