How do you liquidate your company and not pay your debts?

Deregistration of legal entities in the Republic of Moldova involves a complex procedure designed to protect the rights of creditors who have outstanding claims against the person who wishes to liquidate an existing entity.

In a simpler sense, this would involve going through several steps:
1. Filing an application for dissolution at the Public Services Agency (PSA);
2. The company's entry in the register with "in liquidation" status;
3. Publication of the liquidation notice in the Official Monitor (OM) and informing the company's creditors;
4. Forwarding of claims to creditors within 2-4 months for payment;
5. Liquidation of assets;
6. Payment of claims;
7. Distribution of claims to creditors;
8. Request for deregistration;
9. Removal from the State register of legal entities and individual entrepreneurs;

The current law provides for various situations of liquidation of the legal entities (art. 233 para. (1) of the Civil Code):

a) expiry of the term set for its term;
b) achievement of the purpose for which it was established or the impossibility of achieving it;
c) decision of its competent body;
d) court decision in the cases referred to in art. 224;
e) insolvency or termination of the insolvency proceedings in connection with the insufficiency of the debtor's assets;
f) fact that the non-profit legal entity or cooperative has no members;
g) other causes provided for by law or by the memorandum of association.

Let us not forget that in Moldova there are several forms of organization for those who want to carry out entrepreneurial activity, including SRL, SA, SNC, SN, Cooperative, Individual Enterprise, etc.

At the delivery deadline, you do not get anything and you cannot reach any of your former business partners. Therefore, you go to the lawyer to solve the problem and he/she tries to identify who is the potential defendant to take legal action and finds out - Individual Enterprise ION has already been liquidated and deregistered several months ago.

Liquidated? How? The company to which you were essentially indebted has disappeared without any difficulties, without returning the advance paid?

Well, look, is this due to some minor discrepancy in the deregistration of Individual Enterprises? Although such an entrepreneur may be much more economically developed than a SRL, in order to be deregistered he does not have to go through a lengthy, complicated procedure, which involves submitting an application with the following annexes:

- proof of no debts to the state budget and, more recently,
- the declaration of the beneficial owner;

Is that all? Indeed a simplified procedure to the maximum and minimum package of documents to deregister an individual enterprise.

Check companie on-line: www.date.gov.md