The request for dissolution or liquidation of a company in Iran has to be submitted to the Corporate and Non-Commercial Institution Registration Bureau (CNCIRB), the governmental authority that registers all legal entities in Iran. However, in certain cases, the shareholders may submit their demand to a court. Please contact our team of lawyers in Iran to find out what these special cases are or how to open a company in Iran.
Liquidation of companies in Iran takes place after the dissolution stage. Dissolution of a company means that the activity is ended, however in the liquidation stage, the company loses its legal entity.
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Liquidation of an Iranian joint stock company
After the dissolution of a joint stock company through the CNCIRB or the court, the resolution or the court verdict appoints and determines a party that enacts as the liquidator, as well as the place of liquidation. The liquidator can be one of the shareholders or a person separate from the company.
The liquidation process consists of the following stages:
• ending of the activities;
• fulfilling the obligations;
• collection of debts of the company;
• undertaking any new transactions necessary for the fulfillment of the obligations.
The start of the liquidation process in Iran
After the dissolution of the company, the liquidation process begins. The terms “under liquidation” are added to the company’s official name and the names of all the managers and liquidators have to be mentioned in all the documents linked to the company.
The liquidation is a range of operations meant to:
• collect the credits;
• pay the debts;
• convert the assets into cash;
• divide the cash obtained among the company’s shareholders.
Our lawyers in Iran also can offer advice on debt collection in this country.
When is a company liquidated in Iran?
A joint stock company liquidation in Iran happens in the following situations:
1. if the company has terminated the purpose for which it was created, or when the company has become unable to fulfill its purpose;
2. if a company was opened for a limited time and that time has ended, unless it was prolonged before its term;
3. if the company has become insolvent;
4. if the shareholders decide to liquidate the company for any grounds;
5. in case a court issued a final liquidation order.
Our Iranian lawyers are specialized in dealing with the complex aspects of the legal issues concerning business development and company liquidation in Iran, having a proven track record of satisfied foreign investors who always come back for further legal advice in Iran.
Our law firm in Iran can offer thorough assistance for the liquidation of a company in Iran. Please contact our attorneys for further information or if you need any other legal advice related to business development in this country.