COMPANY LIQUIDATION
The expert definition states: “Company liquidation represents a legal procedure leading to the termination of a commercial corporation’s business activities, i.e., to the dissolution and extinction of the enterprise in cases where the company is not over-indebted. If the company is over-indebted (meaning assets are lower than liabilities), it is necessary to file for insolvency and initiate insolvency proceedings.”
On the human side, however, it’s a sensitive matter, often accompanied by strong emotions. Many entrepreneurs see their company as their child, and when a business plan doesn’t quite succeed and the enterprise heads towards dissolution, it’s beneficial to have a strong and reliable partner by your side who will ensure all necessary steps are taken in accordance with the law and take on the unpopular role of liquidator. Their main task is then to lead the company through a gradual cessation of its activities, to settle debts, to distribute any remaining assets among the partners or shareholders, and finally, to the company’s extinction by its removal from the commercial register.
Thus, company liquidation is factually utilized especially when a given company is deemed commercially unnecessary and it is desirable to have it removed from the commercial register. It typically involves the cessation of business, whether voluntarily or by force.
- Forced company liquidation represents an involuntary cessation of business. It is usually ordered by a court in legally specified cases.
- Voluntary liquidation of a company is among the more common cases of company dissolution and stems from the shareholders’ (owners’) own decision based on the consensus of the company’s highest body, usually the general meeting.
If you plan to end your business and have decided to dissolve the company through the process of voluntary liquidation, entrust the matter to professionals. We have experience with company liquidations and will sensitively guide you through the entire process from start to finish.
COMPANY LIQUIDATION DOESN’T HAVE TO BE A DRAMA
Although it often involves a sensitive issue, we always strive to approach each client individually, taking into account their needs and wishes. We offer a comprehensive professional service and absolute support in all parts of the company liquidation process. We are happy to help you close one business chapter and relieve you of all necessary administrative activities associated with it. Our expert team will gradually ensure all the following steps for you:
- Complete support in the process of company dissolution associated with voluntary liquidation,
- Administration of the company’s entry into liquidation including registration in the commercial register,
- Preparation of a special financial statement before the company enters liquidation, tax return filing,
- Creation of an opening balance sheet; publishing a creditor’s call in the Commercial Bulletin,
- Liquidation of company assets and satisfaction of creditors,
- Processing of interim and final liquidator’s reports including a proposal for the distribution of the liquidation balance,
- Preparation of the final financial statement and tax return filing,
- Securing tax administrator’s consent for the company’s removal from the commercial register,
- Removal of the company from the commercial register.
While this may sound very complicated, you have nothing to fear. We will undertake the bureaucratic ordeal associated with company liquidation for you. Professionally, discreetly, and with an eye towards minimizing client risks. We will immediately take over all organization of the individual steps, all legally mandated obligations, and handle the whole matter as quickly as possible and in a way that your person, reputation, or new business is not endangered.
COMPANY LIQUIDATION DOES NOT AUTOMATICALLY MEAN YOUR FAILURE
Liquidation is one of the forms of company dissolution, which is unfortunately often mistakenly associated with incapacity or failure in business. However, this statement is not always true. A business can be successfully liquidated even if it has no problems. The proceeds from the liquidation can then be much more interesting for the company’s owners than continuing in business.
Time plays a particularly big role here. Successful company liquidation can bring a so-called liquidation balance, which is then distributed among the individual shareholders or stockholders. However, achieving a liquidation balance for companies that enter into liquidation too late is often very difficult and usually completely impossible.
The decision itself is never easy and should therefore be preceded by a real assessment of the company’s economic situation. Due to external circumstances, you can easily get into a crisis that results in the inability to continue in the given business. If it is undeniable that the company’s existence in its current state no longer has any perspective, dissolution of the company is usually the only economically viable alternative. These are usually situations created by sales difficulties, production problems, insolvency, unprofitability of production, lack of capital, etc.
However, the decision to dissolve the company may also be based on the simple intention of the founder to end their business activity. Whatever your reason, entrust this task to our qualified liquidators, who have perfect knowledge in the fields of law, accounting, and tax issues, will answer all your questions, and ensure a transparent company liquidation process for you.
