Company Liquidation

Company Liquidation in Pakistan

Company liquidation in Pakistan, Liquidation is the process in accounting by which a company is brought to an end. The assets and property of the company are redistributed. Liquidation is also sometimes referred to as winding-up or dissolution, although dissolution technically refers to the last stage of liquidation.

The process of liquidation also arises when customs, an authority or agency in a country responsible for collecting and safeguarding customs duties, determines the final computation or ascertainment of the duties or drawback accruing on an entry.

Alliott Shahid Hadi helps you in Company liquidation which is a long and tedious process; it might be compulsory or voluntary. Once you plan to close down your business, the government entities should be notified of the same, so as to avoid any accumulated fines and penalties.

License cancellation is one of the primary steps in the liquidation process, and the formalities differ based on the form of the company. In the case of establishments and sole proprietorships, you will have to apply for cancellation through DED. Also, clearances need to be acquired from the below-mentioned departments-

• Ministry of Human Resources
• Directorate of Residency and Foreigners Affairs
• The relevant water and electricity authority
• The leasing entity

Whereas, for companies with shares, the process is not that simple. It involves liquidating the shares, collecting the debts and paying the creditors’ before finalizing with DED. Discharging your liabilities towards creditors and partners is mandatory in the case of shareholding companies.

If the legal form of your company is one of these, then you will have to appoint a liquidator;

• General Partnership
• Limited Liability Company
• Simple Limited Partnership
• Public Joint Stock Company
• Private Joint Stock Company

The company liquidation process involves various steps such as publishing the notice of liquidation in 2 local newspapers, submitting a declaration letter to DED from the liquidator and the partners indicating no objection, cancelling the foreign partners’ visas sponsored by the company and many more. You will have to closely monitor the procedures, before you go ahead with the decision.

If you find it difficult to go through the whole lot of procedures and involvement with the authorities, then please feel free to contact Alliott Shahid Hadi. We can help you liquidate any form of company in any sector.