Liquidating a company is a process of winding up a company because of many reasons. It may happen sometimes due to the financial issues or sometimes the agreement period got over by a certain company or the person who made the agreement. For such that case we have to liquefy our company for the sake of others. Many of the persons ask that how to liquidate a company For this question, the answer is very simple if the person wants to close his or her company by relieving himself or herself is doing this mostly. Liquidation is of two types they are the Voluntary Liquidation and Compulsory Liquidation. The liquidation process may be done by the concerned person who is called as the liquidator and he will do all the process of winding up a company. In such that cases they will notice certain things that are good for their future that is they have to notice the credit balance of the company and the balance amount that is to be returned to the shareholders and the court amount. One can wind up their business due to poor conditions them and some of them want to quit their company. For that many of the people are willing to buy a company for themselves, at this period they came forward if your company has the potential to regain all the shares.
Process for liquidation
If the company needs voluntary liquidation it is easy to be close to its company. They need to lookup certain things that are very simple and easy for them, they are the shares and the balance amount that be settled these are the major two things that can be noticed when have to be wind up any projects. In a compulsory liquidation, it is very hard that we should never face that kind of situation that the people faced hereafter. Compulsory liquidation can only be done if the agreement period got over or the person who gives money for the document. So we must be very careful about the time period and the due date of the agreement. Once it got over they approach the court for the further process, the court will arrange a liquidator and send a notice to the company. If we are failed to vacate or wind up our company the court will take immediate action and we will immediately get out of our company. There is no time limit to liquidate a company, it has to vary according to the cases that depend and it is not easy to vacate a company without enough and correct information. If it is a compulsory liquidation they have been given time to vacate their company, the vacated time is 21 days to resettle the amount for others and after 2 weeks time, we should liquidate our company. This is the general procedure for all companies. After winding up a company we receive a notice and an agreement copy after 14 days of liquefied. The liquidator is the person one who notices and investigate all the process that how much amount can be returned to the people and the shareholders and the court aside. The liquidator is having work until the company receives the notice. This is said to be the process of liquidation.