Termination of a public or charitable organization.
Terminating an NGO or BO: meeting decisions, creditors, transfer of remaining property, removal of non-profit status and exclusion from the Unified State Register.
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| Base Analysis of the situation; Meeting decisions and documents; Submission to the Unified State Register; Basic tax part | from 20 000 ₴ |
| Standard Everything from Basic; Working with creditors; Grant reporting to donors; Transfer of residual property; Full cycle to exclusion from the Unified State Register | from 30 000 ₴ |
About the service
Are you winding down the activities of a public or charitable organization? Unlike a commercial legal entity, in a non-profit organization or a non-profit organization, the remaining property is not returned to the founders or members, but is transferred to another non-profit structure or to the state's income. An error in distribution is a basis for appealing the termination and financial claims.
We support termination in accordance with Law No. 4572-VI (for NGOs) or No. 5073-VI (for BOs): resolution of the meeting, notification of creditors, State Tax Service audit, grant reporting, legal transfer of residual property, removal of non-profit status and exclusion from the Unified State Register.
What do you get?
A public or charitable organization is terminated in accordance with Law No. 4572-VI or No. 5073-VI: an entry in the Unified State Register of Dissolution, non-profit status in the State Tax Service is removed, document flow is transferred to the archive, and residual property is legally distributed (subject to non-profit restrictions).
- Decision of the meeting of members (or the founder of the institution) on termination
- Working with creditors and claims
- Documentary tax audit of the State Tax Service and coordination of results
- Transfer of residual property to another non-profit structure or to state income (without distribution among the founders)
- Deregistration from the State Tax Service and exclusion from the Unified State Register
How it works
The termination of a non-profit organization is regulated by Law No. 4572-VI 'On Public Associations' (for NGOs) or Law No. 5073-VI 'On Charitable Activities and Charitable Organizations' (for BOs). The process is similar to the termination of a commercial legal entity (decision, creditors, DPS audit, archive), but has a key feature: the residual property is not returned to the founders or members, but is transferred to another non-profit organization or to the state's income.
Special attention is paid to grant reporting to donors and regulators. If the organization received international grants, before termination it is necessary to agree on final reports, decide what will happen to the unspent balance, and agree on the transfer of projects or their completion.
When is it the right choice?
Contact us if the NGO or BO is not operating and does not plan to resume its activities; the project for which the organization was created has been completed; the members or founders have decided to wind down the initiative; the organization is being consolidated with another non-profit structure due to termination.
Do not apply if you intend to resume activity in 6-12 months - in this case, it is more expedient to leave the organization 'in dormant mode' with minimal reporting than to go through the full cycle of termination and new registration.
Who needs this service?
Collapsed project
The public initiative has fulfilled its mission or has not received enough resources - we close it cleanly.
Consolidation of non-profits
Two related organizations merge - the termination of one with the transfer of property to the other.
End of grant cycle
The grant project has been completed, no continuation is planned - we are stopping with final reports to donors.
Founders' departure abroad
The team has emigrated, it is impossible to continue operations in Ukraine - we are closing remotely.
Complex structure (non-residents, international donors)
Foreign members, international grants, agreements with foreign partners - Premium consideration.
How we work
- 01
Strategy
We check obligations to donors, creditors, and the State Tax Service. We determine the recipient of the remaining property (another non-profit organization or the state).
- 02
Decision
General meeting of members (for NGOs), decision of the founder of the institution or the board of the foundation (for BOs). Approval of the termination plan.
- 03
Message
Filing in the Unified State Register, notifying creditors, informing donors and grant recipients.
- 04
State Tax Service and reports
Documentary verification of the State Tax Service, final tax reports, final reports to grant donors.
- 05
Completion
Transfer of the remaining property, removal of non-profit status, transfer of documents to the archive, exclusion from the Unified State Register.
What will be required of you?
- Current charter and extract from the Unified State Register current data
- State Tax Service decision on non-profit status for removal during termination
- Accounting reports for all periods that have not yet been audited
- List of assets property, accounts, receivables - to determine the balance
- Grant agreements if any - for final reports to donors
- Corporate solutions we prepare at your request
Frequently asked questions
01 How does the termination of a non-profit organization/organization differ from that of a commercial legal entity?
The fundamental difference is the share of the remaining property. In a commercial legal entity, the remainder is returned to the owners in proportion to the shares. In a non-profit organization, property cannot be distributed among members or founders - it is transferred to another non-profit structure or to the state's income.
02 What about the unspent grant balance?
Depends on the agreement with the donor. Often the unspent part is returned to the donor or transferred to another project of the same organization. When the organization is terminated, it is returned to the donor or, with their consent, transferred to another non-profit structure to continue the goal. We are preparing an agreement with the donor.
03 Is it possible to transfer property to a member of an NGO upon termination?
No. This is expressly prohibited by law and will result in loss of non-profit status and additional income tax. The property must be transferred to another non-profit organization with similar goals or to the state.
04 Is a DPS check required when terminating a public organization?
Yes, as for any legal entity. The State Tax Service checks the intended use of funds (to maintain non-profit status), the correctness of grant accounting, and the compliance of expenses with statutory goals. For active organizations with a large budget, this can be the riskiest stage.
05 How long will the termination take?
The typical period is 4-8 months. For a small organization without significant assets and grants - closer to 4. For an organization with active projects and international donors - 6-8 months and longer.
06 Can an organization be 'frozen' instead of terminated?
Legally possible: submit minimal reporting, do not conduct active activities. However, risks accumulate: possible loss of non-profit status for lack of activity, fines for failure to submit reports. If you plan to resume activities within a year - you can freeze; if for a long time - it is better to stop.
Do you have any questions about this service?
A partner of "Your Lawyer" will answer your questions during the working day with an assessment of the prospects and cost.