Liquidation does not stop you from being economically active because it is just a tool that you use to get rid of a business with problems so that you can try, try and try again.
I often consult with people who fear that if they liquidate their business they will be penalised and will never be able to own a business again.
The good news is that one does not get penalised if you owned a business that was liquidated. You can have 50 businesses that were liquidated and you can have 50 more that make millions of Rands. It is the because of the principles of the economy that this is possible.
No system exists in our country where you are personally blacklisted because you liquidated a Company or Close Corporation. In fact, the Companies Act and Close Corporation Act place a duty on you to liquidate a business when it cannot pay its debt or when its liabilities exceed its assets. Nowhere in these Acts, or any other piece of legislation, is it stated that you are only allowed to have one business and if it fails you are never allowed to have another business. It won’t make sense for the economy if business owners are removed from the economic pool to try and try again until they are successful. These are international concepts and is true in nearly every country with a democratic capitalistic economy.
Liquidation does not stop you from earning an income
A lot of times people continue with a debt-ridden business simply because they have no other means of an income. It is possible to liquidate one Company or Close Corporation while you trade in another. Every case is unique so we will consult with you personally on how to do this.
Liquidation can give a business new life
As stated before, any person can have 50 (or more) businesses that were liquidated and fifty more that are successful. Most business owners who want to continue with their business, find that there is new life in their businesses once they got rid of the problems through liquidation and continue with a debt free business.
When we consult with you, we will explain how this process works.
Liquidation does not stop you from being economically active. On the contrary, it helps you to remain economically active and successful.