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Liquidation is the process by which a company gets closed down, because the business has become insolvent. Liquidation can either be the end of a chapter in your life, or it can be an enabler for a new chapter . We at Debt Correct can help you with the registration of your new company.

QUICK GUIDE TO LIQUIDATION

When does a director apply for liquidation?

In general the Directors will apply for liquidation under the following circumstances:
1. The Business is insolvent, the Liabilities exceed the Assets. Remember if a Business conduct trading while factually insolvent, you as a Director will be held personally responsible for any Debt incurred.

What is the process?

The Liquidation process will either be conducted through a High Court application, or by way of a director resolution. The process is Unique for each Business, and the process to be followed will be dictate by the Risk Profile associated with the Business.

WHEN DOES A DIRECTOR APPLY FOR LIQUIDATION?

In general the Directors will apply for liquidation under the following circumstances:
1. The Business is insolvent, the Liabilities exceed the Assets. Remember if a Business conduct trading while factually insolvent, you as a Director will be held personally responsible for any Debt incurred.

2. When the Business runs into Liquidity problems or it is difficult to pay Trade Creditors and the situation will not better on the short term.

3. The Business has stopped trading.

THE PROCESS

The Liquidation process will either be conducted through a High Court application, or by way of a director resolution. The cost involved to start the process is R45,000.00 This cost can be paid off in monthly installments. The process is Unique for each Business, and the process to be followed will be dictate by the Risk Profile associated with the Business.

The following is required:

The Registration documents of the business
The Directors / Members ID documents
List of Assets and liabilities
SARS Registration document

• We will consult with you to obtain a better understanding of your needs and then come up with a plan of action that will bring about the best possible outcome. We are Business people. All processes must make economic sense, else why do it? It is always important that we drive towards a desired outcome, and in the majority of cases Liquidation is just part of the process. The liquidation process is fast and can take less than two weeks to resolve. We will lonely begin this process once we have consulted with you and have agreed upon the outcome.