Services
COMPANY LIQUIDATION
COMPANY LIQUIDATION: THE COMPANY LIQUIDATION PROCESS
Company liquidation is the process of legally closing a business by terminating its activities. In Turkey, company liquidation must be conducted in accordance with certain legal procedures and regulations. This process involves paying all the company's debts, collecting receivables, selling assets, and distributing remaining capital to the partners. Liquidation is typically required when a company faces financial difficulties, changes in market conditions, or a decision to cease operations. This procedure ensures that the company is relieved of legal and financial liabilities and prevents future potential risks.
As Özay Muhasebe and Financial Consultancy, we guide you through every stage of the company liquidation process. When a liquidation decision is made, it is necessary to delete the trade registry record, notify the tax office, and organize all legal documents. Professional support is crucial to ensure that this process is managed correctly and quickly. Entrepreneurs who complete all the steps in the liquidation process can ensure that their company closes without financial or legal issues. You can contact us to receive professional support in your company liquidation process.
WHAT IS COMPANY LIQUIDATION AND WHY IS IT NECESSARY ?
Company liquidation is the process of legally closing a business by terminating its activities. This process includes paying all debts, collecting receivables, selling assets, and distributing remaining capital to the partners. Company liquidation typically occurs when a business is unable to continue its operations, faces financial difficulties, or undergoes significant changes in its business model.
There are several key reasons for company liquidation. First, financial issues such as the company's inability to pay its debts or a disrupted balance between income and expenses can trigger the liquidation process. Second, if the company’s partners decide to terminate the business operations, liquidation may be initiated.
Additionally, the company may need to liquidate due to its inability to compete or because of changes in market conditions. Legal and managerial reasons are also important factors; non-compliance with regulations or managerial mistakes may require liquidation. Each of these situations may lead to the liquidation process to minimize future risks and free the company from legal responsibilities.
HOW DOES THE COMPANY LIQUIDATION PROCESS WORK ?
DECISION TO LIQUIDATE
A liquidation decision is made by unanimous vote of the partners in the company's general assembly.
TRADE REGISTRY RECORD
The liquidation decision must be registered with the trade registry. At this stage, the company is referred to as being in "Liquidation."
APPOINTMENT OF A LIQUIDATOR
A liquidator is appointed to carry out the liquidation procedures.
SETTLING DEBTS AND RECEIVABLES
All company debts are paid, and receivables are collected.
SALE OF ASSETS
The company’s movable and immovable assets are put up for sale.
CLOSURE AND RECORD DELETION
Once the liquidation procedures are completed, the company’s trade registry record is deleted.
DOCUMENTS REQUIRED FOR COMPANY LIQUIDATION
The company liquidation process requires certain documents to be thoroughly prepared. The main documents needed during liquidation are as follows:
LIQUIDATION DECISION MINUTES
The liquidation decision taken by the company partners must be recorded in writing. This minute is considered the official document for starting the liquidation process.
COMPANY ARTICLES OF ASSOCIATION AND TRADE REGISTRY GAZETTE
The company’s articles of association and the trade registry gazette are necessary to provide the official records for the liquidation process.
NOTARIZED DOCUMENTS RELATED TO THE APPOINTMENT OF A LIQUIDATOR
The liquidator, who will be responsible for paying the company's debts and selling assets, is appointed with notarized documents.
FINANCIAL STATEMENTS REQUIRED TO SETTLE DEBTS AND RECEIVABLES
During the liquidation process, financial statements must be prepared to correctly organize the company's debts and receivables. These statements provide a clear view of the company’s financial situation.
DOCUMENTS RELATED TO NOTIFICATIONS TO THE TAX OFFICE AND SOCIAL SECURITY INSTITUTION
Notifications to the tax office and the Social Security Institution (SGK) are crucial during company liquidation. These notifications show that the company is fulfilling its legal obligations.
ADVANTAGES AND CHALLENGES OF COMPANY LIQUIDATION
Company liquidation is an important process, especially to ensure legal compliance. However, the advantages and challenges of this process are as follows:
ADVANTAGES
- Completion of legal obligations and payment of debts.
- Relief of financial and legal liabilities for company partners.
- Official termination of business activities, protecting from future risks.
CHALLENGES
- Managing complex legal procedures.
- The liquidation process can take a long time (usually 1-2 years).
- Extra workload due to the need for detailed financial statements and debt reviews.
As Özay Muhasebe and Financial Consultancy, we provide support at every stage of the liquidation process and offer professional guidance to ensure the process is completed quickly and accurately.
Phone: 0 532 261 18 19
Özay Muhasebe - Istanbul Company Liquidation - Financial Consultancy