Bellerage

New deadline set for LLC voluntary liquidation

New deadline set for LLC voluntary liquidation

As of September 1st 2017, the term for voluntary liquidation of a limited liability company is restricted by law.

 

Under the new rules, a company will have to be wound up within one year from the day of the shareholders’ resolution. Prior to that there was no statutory deadline.

If a company fails to comply with the deadline, the liquidation process is cancelled. The company will not be able to apply for liquidation for another six months. The statutory term can only be extended by court, but no more than for six months.

As of now, only LLCs have been subjected to the new regulations. Joint-stock companies, branch offices and representative offices are still free to take their time with liquidation.