Business Liquidation in Moldova Understanding the Process and Key Features
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Company liquidation, whether it be a large enterprise or a small firm, can be a lengthy and time-consuming process. In addition to collecting a package of relevant documents, the founder must also comply with legal requirements, which can vary depending on the reason for liquidation.
Understanding the grounds for business liquidation
Under the legislation of the Republic of Moldova, a business can be liquidated either by
- the founders’ decision;
- the court’s decision.
Reasons for liquidation may include:
- documents expiration or achievement of business goals;
- business unprofitability;
- invalid constituent documents;
- Business regulatory violations;
- bankruptcy;
- failure to provide necessary tax returns or other reports on the company’s activities for over a year.
Specifics of liquidating a business in Moldova
The process of liquidating a business in Moldova can take up to 6 to 8 months, depending on the complexity of the case. To begin the process, the company must announce the liquidation in the Official Gazette of Moldova and inform all known creditors within a specified time frame.
Prior to liquidation, the State Tax Service conducts a tax audit.
During liquidation, a liquidation commission is established at the enterprise to prepare preliminary and final balance sheets, manage creditor claims, and complete other necessary tasks.
After fulfilling all creditors’ claims and meeting all legal requirements, the company can be dissolved.
Consulting services for business liquidation
Failure to follow the liquidation procedure established by law can result in various types of liability for the founders, including criminal charges. BULR is a consulting company that provides highly qualified assistance in legal and financial consulting.
Our experts are familiar with all the intricacies of the procedure and the norms of the current legislation, and we are ready to help the company at any stage of liquidation. With BULR, you can be confident that you have closed your business correctly.