Company Deregistration and Bankruptcy
When closing a company, it ceases to operate as a result of deregistration or bankruptcy (liquidation). When a company is deregistered, it no longer has any assets or liabilities, as well as any standing as a legal entity.
When a business or company undergoes liquidation or bankruptcy, their liabilities have exceeded their assets and can no longer pay for expenses or debts. Therefore, the business must sell their assets, pay off creditors, and issue remaining assets to the main company.
Closing the business requires several steps and must be followed correctly in order to be cleared from any taxes or extra costs.
Sometimes an unfortunate occurrence, other times an opportune move, deregistration is never an easy process. Our experience at LehmanBrown and expertise with business regulation and registration puts us in the perfect position to offer you a smoother transition in the deregistration process.
Never an easy situation to deal with, the inability to pay one’s debts when they are due may lead to bankruptcy. This is the case for both individuals and companies.
The normal procedure is for a liquidation committee to be appointed to gather and dispose of the assets of the insolvent so to be able to pay the creditors. In China, the relevant government authorities must approve the liquidation plans of an enterprise and certain procedures must be followed.
How can LehmanBrown help?
LehmanBrown is able to offer advice on recovery plans as well on the more complex side of the liquidation procedure. In the current business environment, corporate restructuring and turnaround processes can often be closely linked to insolvency, which sometimes uncovers possibilities for saving the business.
LehmanBrown has a thorough understanding of bankruptcy and liquidation procedures and the experience required for seeking out alternative financial sources. We are also able to offer proposals for re-organising debts and for suggestions to help companies back on track.
For more information on LehmanBrown’s Company Deregistration and Bankruptcy, please contact us at firstname.lastname@example.org