Business And Corporate Lawyers
Voluntary dissolution of an individual company
A sole proprietorship, as it is called, is a company in which one shareholder can also serve as the CEO of the company and as the sole director in it. Like any other company, a sole proprietorship can reach a state of liquidation, for example, due to lack of activity and as far as voluntary liquidation is concerned, this can be done through a shortened and unique liquidation route for sole proprietorships.
מאת עו״ד ונוטריון יגאל מור
דיוק בייעוץ המשפטי. מצויינות בליווי המשפטי.
Shortened disassembly route
A company’s liquidation procedure is often a long and complicated process, but over time, it has become clear that when a sole proprietorship dissolves voluntarily, it is possible to shorten the procedure and save the registrar of companies considerable time and effort. This is a relatively quick and straightforward procedure, but it is recommended not to perform it independently but through a lawyer. Firstly, the affidavits part of the proceeding must be signed before an attorney. Secondly, for the proceeding to be handled optimally while adhering to the required schedules and without any delay or unnecessary costs, hiring an expert Attorney in these matters is recommended.
Conditions for the track
The abbreviated route, it is essential to say, is not relevant to any individual company but to one in which the sole shareholder is also the sole director. Also another condition is that the company does not have many assets because, as part of the procedure, the requirement is that the company will pay off its liabilities and realize its assets within six months. Individual companies that have complex obligations will not be able to meet this condition and will therefore be required to undergo a standard liquidation procedure. It’s important to note that as part of the liquidation procedure, the company owner can receive an exemption from the payment of the annual fee, including an exemption from payment for previous years had he not paid, and thus avoid imposing sanctions. To this end, he must submit relevant documents, and the lawyer will guide him in this matter.
Stages of the liquidation procedure
As mentioned, this is a unique liquidation procedure for individual companies, it is a relatively short procedure and we will review its stages:
- Signing a liquidation application form and attaching a solvency affidavit;
- Appointment of a liquidator (who may be the shareholder himself) and signature on an affidavit;
- Setting a date for the general meeting, which must be within four to six months from the date of the decision to dissolve the company (since there is one shareholder in the company, holding a general meeting is, in fact, only formal);
- Publication regarding a request is submitted for the voluntary dissolution of the company, and a copy of the publication is sent to the Registrar of Companies. A request for such publication must be sent within seven days from the date of signing the affidavit of insolvency;
- After receiving the approval of the Registrar of Companies, the owner of the company can start realizing its assets and liquidating its liabilities;
- At the end of all these steps, the Companies Registry will receive a certificate of liquidation of the company. The treatment time usually lasts about 45 days on average.
I invite you to consult with me on all matters relating to the dissolution of companies
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We invite you to consult with us regarding the dissolution of companies.
Adv. Mor & Co.’s commercial law department has experience in representing various entrepreneurs, businesses, and corporations from Israel and abroad in a wide variety of legal areas.
