The closure of a company or a branch office produces more documents than its incorporation. In structures with foreign shareholders all these documents are reported to head office, and the translation process lasts for months. The texts are formal and formulaic, but the sequence is critical; if one step is skipped, the next step is not processed.
Liquidation resolution
The general meeting resolves on liquidation and the resolution is registered. The date of the resolution is the start of the liquidation process. The date is given prominence.
Change of trade name
The company's trade name is used with the wording "tasfiye hâlinde" (in liquidation). This wording appears in all correspondence. It is kept in translation.
Liquidator
The person or persons appointed are registered and their powers are determined. The limits of the powers are stated. Missing authority vitiates the transaction.
Call to creditors
Creditors are called on by public notice and the waiting period runs. The text of the notice is formulaic. The period is strict.
Opening balance sheet
The financial position at the start of liquidation is drawn up. This balance sheet is the basis of later comparisons. Item names are kept.
Collection of receivables
Existing receivables are collected and recorded. Those that cannot be collected are shown separately. The reasons are stated.
Payment of debts
Debts are paid in order of priority. The order of payment is tied to legislation and cannot be changed. The order is kept in translation.
Asset sales
Fixed assets and stocks are sold. Sale documents and valuation reports go into the file. The amounts are carried over exactly.
Termination of employment contracts
The employees' employment relationships end and the payments are made. Release agreements (ibraname) and payslips are issued. These documents go into the personnel file.
Termination of contracts
Lease, supply and service contracts are terminated. Termination notices and reconciliations are translated. The dates are kept.
Tax and social security closure
Closure notifications are made to the authorities and clearance letters showing no outstanding debt are obtained. These letters are dated. How recent they are matters.
Final balance sheet
At the end of liquidation a final balance sheet is prepared. The remaining assets are distributed to the shareholders. The distribution table is part of the translation.
Liquidation report
The liquidator reports on the work done. The report is discussed at the general meeting. The text is translated without being summarised.
Registration of closure
The completion of the liquidation is registered and announced. The registration date is the moment at which legal personality ends. This date is critical.
Retention of books and documents
After closure the books are retained for a set period. A person responsible for retention is designated. This obligation does not end with registration.
Closure of a branch office
The closure of branch offices of foreign companies is subject to separate rules. The head office resolution and its translation are required. The legalisation chain applies.
Closure of a liaison office
When a liaison office is closed, notification is made to the relevant authority. The annexes to the notification are listed. The list is translated in full.
Reporting to head office
The closure steps are reported to head office regularly, and the completion of each step is evidenced by a document. Step names and dates are kept fixed, because the report is tracked in the same table for months. Inconsistency makes the process impossible to follow.