Company Liquidation

ACON Guidance on Liquidation of the Company in Azerbaijan!

The liquidation of a company means terminating its existence and activities without transferring its rights and responsibilities to others. The Civil Code of the Republic of Azerbaijan regulates the liquidation process for companies:

STEP 1. Decision to Liquidate

The shareholders or board of directors make a formal decision to close and liquidate the company.

STEP 2. Notification to Creditors and Public

The company notifies its creditors and publishes public announcements as required by law.

STEP 3. Settling Liabilities

All company debts and obligations are settled, including employee salaries and outstanding payments.

STEP 4. Final Accounts and Reports

Final financial statements are prepared and submitted to relevant authorities, including tax offices.

STEP 5. Deregistration

The company is officially removed from the state register of legal entities.

STEP 6. Closure of Bank Accounts

Once deregistered, all company bank accounts are officially closed and any remaining funds are distributed accordingly.

Sometimes, companies start the liquidation process when they achieve their initial goals or when their set activity period ends. For instance, this can happen when a limited-time business project is finished or a particular project task is completed. Furthermore, the founders or a designated body authorized by the company’s charter can make the decision to liquidate a company as well. We can also refer to this as voluntary liquidation.Additionally, another reason for company liquidation in Azerbaijan might be bankruptcy, often arising from insolvency.

Bankruptcy is a legal situation that arises when a company cannot pay its debts. In such a case, the company may be declared bankrupt by judicial decision.

ACON Services related to Liquidation, Reorganization and Bankruptcy of the Company in Azerbaijan:

Liquidation, bankruptcy and reorganization of legal entities is a complex legal procedure and requires theoretical and practical knowledge. We can confidently say that the members of our ACON Legal Team are capable of handling any type of legal task.

Legal Consultation

We provide expert legal advice on the liquidation process, legal obligations, and compliance with Azerbaijani regulations.

Preparation of Liquidation Documents

All required board resolutions, tax filings, and state registration documents are prepared and submitted by our legal team.

Notification to State Authorities

We take care of notifying all relevant authorities, including the Ministry of Taxes, Justice, and social insurance bodies.

Debt Settlement Support

We assist in resolving outstanding debts and obligations to employees, creditors, and tax authorities in accordance with the law.

Final Financial Reports

We prepare and submit final tax declarations, financial reports, and closure statements to ensure transparency and legal compliance.

Deregistration and Closure

We handle the official removal of your company from the legal register and ensure the secure closure of all corporate bank accounts.

ACON Law Firm has been providing various types of services to foreign and domestic companies in its field for many years. As a result of the professional activity of our team, we have provided services to many foreign legal entities and individuals in starting business activities in Azerbaijan. In some cases, our services have been related to the liquidation or reorganization of companies as well. Let’s also note that our lawyers have also handled the legal services related to company liquidation and reorganization of companies with the same professionalism.

If you need legal services related to the reorganization, liquidation and bankruptcy of your company, ACON can help you. We are ready to share our legal knowledge and provide services to you regarding all these legal procedures.