Everything has its start, and its finish...
In the case of a business, the start is a mandatory registration procedure that allows you to legalize a newly created company.
Ten years ago the process of incorporation was quite sophisticated and included many visits to the local administration authority, tax authority and police, social insurance funds etc. By now the process has been substantially simplified. However, one should bear in mind that this procedure is not fully technical yet and lawyers are still needed at the stage of preparation of statutory documents. This issue should not be ignored as the foundation for future corporate disputes may be created at the stage of preparation of statutory documents. Additionally, the proper structuring of business, including diversification of risks and assets protection, is essential.
Under incorporation we not only imply the competent drafting of statutory documents and “key ready” registration, but also legal advice in such issues as the choice of structure, form of business organization, taxation, and other business issues.
If registration can be considered as a start, then the liquidation of a company does not always mean finish...
In western world companies are proud of their long history. In our country “companies with history” sometimes represents a potential problem. The matter is that such a “history” is a perfect reason to conduct various inspections, including tax inspections. And the results of such inspections are not always comforting for business. Of course, there are appeal mechanisms available.
However, in many cases there is no sense to wait for an inspection. The most efficient way is to liquidate an enterprise without waiting for the next inspection. Indeed, nobody forbids setting up a company-successor that will conduct the economic activity.
There are only few legal mechanisms of liquidation of an enterprise: general procedure, sale of corporate rights or “fast liquidation”, and insolvency. The choice of a legal mechanism of liquidation depends on the particular situation of a client. Important is that liquidation is conducted “properly” so that it provides for achievement of goals and won’t make problems in the future.