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How to liquidate a business in Georgia quickly and without repercussions?

1486
11/20/2023

The closure of a company is a challenging phase in the life of every entrepreneur. Beyond the emotional toll, this process brings numerous complexities, especially in preparing the necessary documents. Business owners often seek expert assistance in this matter. Services for company liquidation in Georgia significantly simplify the annulment procedure for Sole Proprietorships (IE) and Limited Liability Companies (LLC).

Where to start?

The journey to liquidating a company begins with the decision to dissolve the business. For LLCs, this decision must be made at a general meeting of the founders. The initial steps in the preparatory phase include:

  • Verifying the absence of debts. Existing debts must be fully settled;
  • Ceasing production;
  • Terminating contracts with employees;
  • Filing a liquidation process initiation with the Justice Department;
  • Undergoing a tax audit (usually a desk audit).

How is the procedure of liquidation of LLC?

In the absence of debts, the liquidation procedure for legal entities in Georgia takes four months. During this period, the tax service verifies the accuracy of tax and other mandatory payments by the company. It's also necessary to submit a declaration for profit tax for the last month and property tax for the last year. Another crucial step is conducting an inventory of all LLC assets. The proceeds from their sale are used to settle debts or are distributed among the founders.

How does the procedure of liquidation of a IE proceed?

Closing a sole proprietorship in Georgia takes approximately three working days. The process involves:

  • Submitting a closure statement to the tax service, completing a questionnaire, and arranging for the settlement of any tax liabilities at the end of the business liquidation;
  • Annulment of the sole proprietorship's registration with the Justice Department, which takes one working day;
  • De-registering from the tax service, settling any tax liabilities, followed by the annulment of the sole proprietorship status.
  • After 30 working days, submitting a final tax declaration and deactivating the personal account on the tax service portal rs.ge.

Is it possible to liquidate a business remotely?

Remote liquidation of a company differs from in-person procedures only in that an official representative, authorized by power of attorney, acts on behalf of the general director at each stage, whether it be debt verification, document submission to the Justice Department, tax audit, or company liquidation in the Public Registry. The presence or absence of the actual business owner does not affect the duration of the liquidation process.

Conclusion

Jara Accounting provides high-quality assistance in the liquidation process of IE and LLC in Georgia. We help our clients close their company in accordance with Georgian legislation, including remote procedures. Our services include expert consulting, thorough document preparation for company liquidation, representation in government bodies, and support through all legal procedures. Turning to Jara Accounting ensures a swift, efficient, and legally compliant closure of your IE and LLC in Georgia.

Submit a request for business liquidation, and our specialist will contact you: