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How is the liquidation process of a legal entity carried out?
How is the liquidation process of a legal entity carried out?
The activities of the legal entity have been suspended for 10 years. The founder, who is a citizen of the Republic of Azerbaijan, has no accounts receivable or payable, including no debts related to taxes or other mandatory payments. How should the process of removing the mentioned legal entity from the state register and cancelling its TIN be carried out?
The State Tax Service under the Ministry of Economy reported that, according to Article 59 of the Civil Code, the liquidation of a legal entity means the termination of its existence and activities without transferring its rights and obligations to other persons through legal succession.
A legal entity may be liquidated in the following cases:
By the decision of its founders (participants) or the body authorized by the charter of the legal entity, including in connection with the expiration of the period established for the existence of the legal entity or the achievement of the purpose for which it was created;
If the court declares its registration invalid due to violations of legislation committed during the establishment of the legal entity;
By a court decision in cases where activities are carried out without the required special permit (license), prohibited activities are conducted, legislation is repeatedly or grossly violated, or a public association or foundation systematically engages in activities contrary to its charter purposes, as well as in other cases provided for by the Civil Code and the Laws of the Republic of Azerbaijan “On Banks”, “On Insurance Activity”, and “On Investment Funds”;
If a criminal-law measure in the form of liquidation is applied to the legal entity by a final court decision.
A legal entity is also liquidated as a result of bankruptcy. If the value of the assets of the liquidated legal entity is insufficient to satisfy creditors’ claims, it may only be liquidated through bankruptcy proceedings.
The overall duration of the liquidation process must not exceed one year from the date the information on the liquidation of the legal entity is entered into the state register of legal entities. Expiration of this period results in the liquidation process having to be restarted.
Detailed information on the procedure for liquidating a legal entity, including the list of required documents and the tax authority to which the documents must be submitted, can be found at the following link:
https://www.taxes.gov.az/az/page/huquqi-sexsin-legv-edilmesi-proseduru-haqqinda
The activities of the legal entity have been suspended for 10 years. The founder, who is a citizen of the Republic of Azerbaijan, has no accounts receivable or payable, including no debts related to taxes or other mandatory payments. How should the process of removing the mentioned legal entity from the state register and cancelling its TIN be carried out?
The State Tax Service under the Ministry of Economy reported that, according to Article 59 of the Civil Code, the liquidation of a legal entity means the termination of its existence and activities without transferring its rights and obligations to other persons through legal succession.
A legal entity may be liquidated in the following cases:
By the decision of its founders (participants) or the body authorized by the charter of the legal entity, including in connection with the expiration of the period established for the existence of the legal entity or the achievement of the purpose for which it was created;
If the court declares its registration invalid due to violations of legislation committed during the establishment of the legal entity;
By a court decision in cases where activities are carried out without the required special permit (license), prohibited activities are conducted, legislation is repeatedly or grossly violated, or a public association or foundation systematically engages in activities contrary to its charter purposes, as well as in other cases provided for by the Civil Code and the Laws of the Republic of Azerbaijan “On Banks”, “On Insurance Activity”, and “On Investment Funds”;
If a criminal-law measure in the form of liquidation is applied to the legal entity by a final court decision.
A legal entity is also liquidated as a result of bankruptcy. If the value of the assets of the liquidated legal entity is insufficient to satisfy creditors’ claims, it may only be liquidated through bankruptcy proceedings.
The overall duration of the liquidation process must not exceed one year from the date the information on the liquidation of the legal entity is entered into the state register of legal entities. Expiration of this period results in the liquidation process having to be restarted.
Detailed information on the procedure for liquidating a legal entity, including the list of required documents and the tax authority to which the documents must be submitted, can be found at the following link:
https://www.taxes.gov.az/az/page/huquqi-sexsin-legv-edilmesi-proseduru-haqqinda