The law on simplified business liquidation has been adopted

According to the new law, companies with the status of small and medium-sized enterprises will have the opportunity to liquidate by submitting just one application. In the application, it will be necessary to confirm that the legal entity has repaid all debts and submitted the necessary reports. Thus, it will greatly simplify the procedure of voluntary liquidation for small companies.

The application for liquidation will be considered within 5 working days, there are several conditions for obtaining a positive decision from the tax service:

• included in the register of SMEs;

• does not have to pay VAT or is exempt from paying tax;

• paid off creditors and employees, has no debts on mandatory payments;

• does not own real estate and vehicles;

• does not go bankrupt and is not in the stage of liquidation or reorganization, is not excluded from the register of legal entities by the decision of the tax service;

• paid off debts on taxes, fees and contributions;

• has no record in the Unified State Register of unreliability of information;

If all the conditions are met, the tax inspectorate makes a record of the planned liquidation and carries out the remaining necessary procedures (makes a publication in the publication “Bulletin of State Registration” and notifies creditors). If claims from creditors are not received, the organization is excluded from the Unified State Register of Legal Entities.

The authors of the initiative believe that the innovations will simplify the process of closing a business for bona fide entrepreneurs.