When an owner or partners of a corporation wants to end the business and dissolve the partnership by closing the company, they are first required to submit an application in the local trading or notary department and ask for their permission to dissolve the corporation. The formal application or letter that the owners or partners of a corporation send to the department is known as the dissolution of corporation certificate.
Brief Description of the Dissolution of Corporation Certificate:
You can understand that companies and businesses are the major part of a country’s economy and governments usually collect most of their revenues and taxes from businesses and companies. This makes it crucial that when a person or group of people wants to start a new company, they are required to notify the local trading department and ask for their permission to start the company. This process is known as registering your company for real or fictitious name. The information and details that you provide with the application are later used for record and inspection purposes. In the same manner, when the partners or owners of a corporation feels that they need to dissolve the company, they can’t just close the business but they are first required to file another application in the notary department. In this application, they inform the department that they have decided to dissolve the corporation and along with that, they are also required to provide the reasons why they are dissolving the corporation and the written permission or consent of all partner stating that they agree to dissolve the company. This formal application is also known as the dissolution of corporation certificate.
Key Elements to include in the Dissolution of Corporation Certificate:
- Name of the corporation that is being dissolved
- Trademark and the registration number of the corporation
- Name(s) of the owners and partners in the corporation
- Date when the corporation started its business
- Duration in which the corporation was actively involved in conducting business in the market
- Date when the application for dissolution certificate is filed
- Reasons of dissolving the corporation
- Details of what will happen after dissolving the corporation (i.e. sale of company, sale of assets or anything else specified with each individual situation)
- Sworn statements of all the partners that they agree to dissolve the corporation
- Sworn statement of the CEO or general partner who is asking for the dissolution certificate
- Signatures of the required partners, board of directors, owners and the notary public officer to legalize the certificate
Importance and uses of the Dissolution of Corporation Certificate:
Once you finally decide to close your company and finish the business, you are required to send this certificate to the notary or trading department. The actual reason of sending this certificate to the department is that you declare that on the mention date, you have closed all the accounts and there will be no further business conducted by your corporation in the future. This means that if there is a liability or tax payment due on your company, you will be asked to resolve those issues first and then you will be allowed to dissolve your corporation.
Here is preview of a Free Sample Dissolution of Corporation Certificate as fillable PDF Form,
Here is download link for this Dissolution of Corporation Certificate,