1. LIQUIDATION

Liquidation of a legal entity entails cessation of its activities without transfer of its rights and obligations to any other person. The liquidation of a company could be due to insolvency or when changing an asset into cash. Typically the liquidation process lasts for one year.

If you are considering postponing bankruptcy please contact us, as we also have experts in this area.

2. LIQUIDATION PROCESS

Kapital provides the following required steps:

Liquidation is declared in writing to the Tax Office
Official notification is issued to all debtors and creditors at intervals three times
All debtors and creditors acknowledged
All debts will be paid and all receivables will be collected so that the company’s liquidation balance sheet will consist only of the bank account, assets and shareholders equity on the liability side
Liquidation profit or loss is calculated
Liquidation will then be officially registered and advertised and the Company will be removed from the list at the Commercial Registry
Declaration forms will given to Tax office with a notification before the name of the company “Under liquidation”

3. APPOINTING A LIQUIDATION OFFICER

Kapital SMMM Ltd. is able to offer services of an independent Liquidation Officer with Power of Attorney to represent the company in all aspects until the liquidation process is complete.

In brief, the Liquidation Officer is responsible for protecting all the rights and assets of the liquidated company as would a rational business person and is responsible for ending the liquidation process as soon as possible (Turkish Trade Law 450/225). The liquidation officer has to give the necessary information about the liquidation process to the shareholders. And also in case of the shareholders’ request, provide a signed document about the liquidation process and to follow through to the end of the liquidation process. In many respects the Liquidation Officer will act as the Company Manager.