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If you have any questions or need more information, our team is here to help. Contact us today, and we’ll be happy to assist you with any inquiries you may have.
087 148 8947
The liquidation process with Wind Up is designed to be quick and efficient. Once we have all the necessary documents and payments are up to date, the process typically takes 1 - 5 business days.
The liquidation process extinguishes ALL of the company's debt, including any amount that is owing to SARS as VAT or income tax The directors will therefore NOT be liable to pay any amount to SARS after the Liquidation has been completed.
No, your personal assets and credit score will remain protected when you liquidate your company. In South Africa, a company is treated as a separate legal entity, meaning its debts and obligations are distinct from those of its directors. Liquidation affects only the company’s assets and liabilities, so directors are not personally liable for the company’s debts unless they have signed personal sureties. This ensures that your personal financial standing and credit score are safeguarded throughout the liquidation process.
Once a company enters liquidation, its assets are collected, valued, and sold off to settle outstanding debts. Here’s a breakdown of the process:
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Asset Collection: The liquidator, appointed to oversee the liquidation, identifies and secures all company assets, including property, equipment, inventory, and receivables.
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Asset Valuation and Sale: The liquidator values these assets and arranges for their sale, aiming to maximize returns for creditors.
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Payment of Debts: Proceeds from asset sales are used to pay off creditors in a specific order, starting with secured creditors, then preferred creditors (such as employees), and finally unsecured creditors if funds remain.
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Distribution of Remaining Funds: Any remaining funds after all debts are settled may be distributed to shareholders. However, in most cases, liabilities exceed assets, and shareholders do not receive a distribution.
This process ensures that all company obligations are met to the extent possible, while allowing the business to formally close.
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If any of the Directors have signed surety on behalf of the company, we will have to do a business evaluation to determine whether liquidation is the right option for you or your business. Please click on the "free business evaluation" plan to get this done.