LIQUIDATING A COMPANY WITH THE OWNERS’ DECISION
There are two possible liquidation procedures available in Estonia for liquidating a company with the owners’ decision:
- Liquidating a company that had economic activities;
- Simplified liquidation for a company that never started economic activities.
The legislative acts regulating the liquidation procedure are the Commercial Code and the Commercial Register Act of the Republic of Estonia.
Prerequisites for liquidation:
- Company owners’ decision on terminating the activities, regardless of the reasons for which such a decision is made;
- No unpaid debts.
Bases for terminating company activities:
- Decision of shareholders on terminating company activities;
- Terminating the company activities for reasons provided in the articles of association.
Liquidating a company that had economic activities
The liquidation process takes on average 6 to 9 months.
The entire procedure consists of several stages. Our bureau provides legal assistance service at any stage of this process. We prepare the necessary records, decisions, submit reports and applications to the commercial register and also represent the client’s interests with authorisation.
Our bureau offers help with solving the following problems:
- Counselling in matters related with the liquidation process;
- Organising the liquidation process from start to finish, incl. remotely with authorisation;
- We also offer company liquidator service;
- Conducting supervision over company liquidation at every stage along with observing and keeping to deadlines.
Limitations to liquidation
A company cannot be liquidated if it is incapable of covering the debts to its creditors. In this case the company liquidators must initiate a bankruptcy procedure.
Simplified company liquidation procedure
Erasing a company from the commercial register without passing the entire liquidation procedure i.e. simplified liquidation procedure.
Prerequisites for simplified liquidation procedure:
- The company has not started its economic activities.
If you have started your company but it has not started its economic activities then according § 63 of the Commercial Register Act, you have the right to submit an application for the company to be erased from the register.
Stages of the simplified liquidation procedure:
- Submitting the application for erasing the company from the commercial register;
- Erasing the company from the register.
Our bureau offers help with solving the following problems:
- Counselling in matters related with the simplified liquidation process;
- Organising the liquidation process from start to finish, incl. by remote procedure with authorisation;
- Conducting supervision over liquidation at every stage along with observing and keeping to deadlines.