As new business need proper planning and strategies, same as it required to windup. Sudden exiting from running business is not an easy, it need lots of time consumption and planning to end. Different regions and countries had their own laws for ending business. The second name of closing business is liquidating. Closing business is always depend on the situation behind this decision, may be bankruptcy, Business loss, unable to pay debtors etc.
Every reason has its own legal procedure to windup, so here are some steps to follow before going to end your business.
If company has a shares then it need the approval of all share holders before taking this decision. Major share holder has much authority for take any decisions of closing business. If any share holder is unable to hold his shares then he can sell his shares. All share holder are the board of the director of the company they run the company with mutual decision so , this big decision also needs the combine decision.
Make a Call To appropriate Authorities:
If company is registered by the local government, then it is necessary to inform the government for closing decision of your company.Every government has its own procedure to allow the company for stopping its services. Company has to apply for cancellation of the license first by their legal procedure. Company has to pay some taxes and to clear it’s all pending taxes first.
Distribute All The Assets:
Before liquidity owner must have to sell all the assets of company by informing all the share holders. It will be good for starting a new business after winding up this, owner can invest his money to the new business. For selling asset owners has to call accountant or lawyer for legal procedure to sell the assets. You can sell all the office accessories, factory machines and goods used in office like furniture, grocery goods, and daily used items.
Make Payments Of Debts:
Clear yours all debts payments may be through court or by hiring lawyer. First of all make a list to you all pending bills and then start paying off these liabilities. Pay your loan, electricity, gas, newspaper and other liabilities before disclosure.
Close Your Accounts:
It is necessary that company has to close its entire bank, saving, mortgage account. Inform bank for their closing business and need to complete all necessary steps to close yours all active account for this company.
Get Papers From Secretary Of State.
At last you can close your running business legally by getting papers of the Secretary State after clearing your all debts. Government will allow you close your business.