Simplified liquidation – fast, compliant, and cost-effective
Simplified liquidation is a legal procedure that enables companies to complete their operations in an orderly and relatively quick manner, without being subjected to unnecessary administrative or financial burdens. The purpose of the procedure is to assess the company’s assets, manage creditor claims, and terminate the company in full compliance with legal requirements.
Below, we provide a detailed overview of the essence and process of simplified liquidation, the factors influencing its cost, and considerations for cost planning.
The Essence and Advantages of Simplified Liquidation
The main advantage of simplified liquidation is that it is more cost-effective and faster than the traditional liquidation procedure. It is particularly useful for companies with transparent assets and receivables, and where there are no pending lawsuits or complex claims.
By opting for simplified liquidation, costs can be reduced, documentation simplified, and the company’s legal status can be closed more efficiently.
Conditions for Applying Simplified Liquidation
Before starting a simplified liquidation, it is mandatory to thoroughly assess the company’s financial and legal situation.
The decision depends on factors such as the number and nature of creditor claims, the condition of company assets, and the existence of any legal disputes.
In practice, simplified liquidation is recommended when the asset assessment is straightforward, creditor claims can be settled quickly and proportionally, and the company’s closure does not require complex court proceedings.
Step-by-Step Process of Simplified Liquidation
The process typically includes the following steps:
- Situation assessment: Reviewing financial statements, contracts, and any ongoing legal cases.
- Decision-making: Resolution by the shareholders’ meeting or general assembly to initiate liquidation.
- Publication and notifications: Notification to the court of registration and informing creditors.
- Settlement of claims: Examination, prioritization, and payment of incoming claims.
- Final accounting: Preparation of the closing balance sheet and final report, followed by the company’s removal from the company register.
- The liquidator’s responsibility is to conduct the process lawfully, ensure equal and fair treatment of creditors, and maintain complete and transparent documentation throughout.
The Cost of Simplified Liquidation – What to Expect
The cost of simplified liquidation consists of several components, so the preliminary cost estimate is always case-specific.
The final cost is mainly influenced by:
- the number of working hours,
- the liquidator’s professional experience,
- accounting service fees,
- legal advice and attorney fees in case of lawsuits,
- administrative and registration court fees,
- costs of any expert examinations,
- and the total amount needed to settle creditor payments.
In general, the cost of simplified liquidation is lower than that of full liquidation, but it is essential to consider all potential expenses during cost planning. Incomplete cost estimation may lead to significant additional financial burdens later.
Practical Tips for a Successful Liquidation
To ensure a smooth process, it is advisable to follow a few key principles:
Conduct a thorough initial assessment, choose an experienced liquidator, prepare a detailed budget and contingency fund, strictly observe deadlines, and keep creditors properly informed throughout the process.
If you require a detailed, personalized cost estimate or professional advice regarding simplified liquidation, please contact us through our provided channels and request a quotation!
