implies the process of termination of a firm
, its assets being sold and any leftovers of the company being distributed to the shareholders. A Czech lawyer
should usually be contacted so as to proceed with ending a business in the Czech Republic
, as this process can sometimes be rather delicate.
Procedures of a Czech company's liquidation
There are some procedures that must be followed in a liquidation process in the Czech Republic, namely:
• analysing the state of the company;
• filing the tax return from the date of entering the liquidation process onwards;
• appointment of a company liquidator;
• auction sale of the property in liquidation;
• drawing up of the company's balance sheet;
• obtaining confirmation from the district social security administration company of no outstanding payments;
• acquiring approval of the liquidation of the Czech company from the tax authority.
Forms of company liquidation in the Czech Republic
In the Commercial Code of the Czech Republic, there are two types of company liquidation, namely:
- voluntary company liquidation, which may be instituted if the legal structure is choosing to take another legal form, if the term of the company has expired, if the goals of the company have been reached etc.;
- enforced company liquidation, that is usually ordered by the court (when the legal entity is in bankruptcy, when the company lacks a reserve fund etc.); in case the reason for which the court decides to liquidate the company can be solved, the decision may be cancelled.
Liquidation is thus one of the forms of company dissolution and it is not necessarily instituted due to bankruptcy, but many times due to the fact that the owners might be more satisfied with terminating the company, than with proceeding with its business activities. Ultimately, the Czech company must be deleted from the Commercial Register so as to complete the liquidation process.
Should you need assistance or advice on company liquidation in the Czech Republic
, you can contact our Czech lawyers
, as they have the required expertise in these matters.