When can a company be liquidated?
- Only a company that is not over-indebted can be liquidated.
- An over-indebted company must file an application for insolvency and in doing so initiate insolvency procedure.
- It is mainly companies that no longer have any use (their business activity has come to an end) that are liquidated.
- The main purpose of dissolving a company (liquidating a business corporation) is to clarify the property relationships of the company and settle property relationships, leading to the company ceasing to exist and being erased from the Commercial Register.
- By going into liquidation, the active commercial activity of the company comes to an end and all action is solely directed at settling the assets and liabilities of the liquidated company, and its subsequent dissolution and extinction.
- Before we move ahead with the actual liquidation process, we first consider whether you company might be used in another way, which would save you money.
Why use our services when liquidating a company?
- The whole liquidation process is relatively drawn-out; thanks to us, however, you don’t need to worry about this – we will take care of everything from A to Z.
- We are able to liquidate a limited liability company (SRO), a joint stock company (AS) or a Societas Europaea (SE).
- We also deal with the liquidation of associations, foundations and endowments.
We take care of the following during the company liquidation process:
- The decision of the general meeting for the company to go into liquidation, in the form of a notarial deed.
- The appointment of a liquidator and its entry in the Commercial Register.
- Determining the remuneration of the liquidator.
- Compiling both declarations that the company is going into liquidation and publishing these in the Business Journal (Obchodní věstník).
- Compiling an initial liquidation accounting balance sheet.
- Compiling a list of assets of the company in liquidation.
- Settling property relationships, debts and claims relating to the company being liquidated.
- Compiling closing liquidation financial statements.
- Creating a proposal for the distribution of the proceeds of liquidation.
- Writing up a list of members/partners to whom a share in the proceeds of liquidation is to be paid.
- Archiving the documents of the liquidated company in the state archive.
- Filing an application for erasure from the Commercial Register.
The price and time required for liquidation
- The price is set on an individual basis according to how complicated liquidation is in the case at issue.
- The basic price of liquidation is CZK 19,900, but the final price might be many times higher.
- The liquidation process takes a minimum of 6 months, but might take several years.