Dostosuj preferencje dotyczące zgody

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Company liquidation services

Liquidation is the process of bringing a business to an end and distributing its assets to claimants.

The reasons for liquidating your business are numerous:

  • lack of family interest. Perhaps your family forms no part of your succession plan, has no interest in taking your business over, or may not be capable of continuing the business.
  • avoiding bankruptcy. If your business is at least solvent or near-solvent, bankruptcy is not an option. And even if you were near or at insolvency, you’d probably find it preferable to liquidate your assets and negotiate amounts owed to your creditors, while at the same time avoiding the stigma of bankruptcy.
  • as an alternative to selling your business. You may also come to realize that selling a business with significant assets is much easier said than done. Most potential buyers will not pay full price for inventory. What’s more, many business owners prefer to purchase their own assets (equipment or inventory) and start a new business rather than buy an existing one.

General steps of business liquidation

  • to end the company’s current interests,
  • collect outstanding debts (collect receivables),
  • pay off all the company’s liabilities,
  • liquidate the company’s assets.

A company in liquidation shall retain legal personality, which means that during the liquidation proceedings the company still exists, keeps accounting or prepare financial statements required by law (including liquidation opening and closing balance sheet), but the rules of the company are changed.

Company liquidation process

Polish company liquidation consists of the following stages:

  1. Opening of liquidation and appointment of liquidators.
  2. Notification of opening of liquidation to the Registration Court.
  3. Sending motion to Monitor Sądowy i Gospodarczy (Court and Commercial Monitor).
  4. Notifications to Real Beneficiary Registry and tax authorities.
  5. Preparation of the opening balance sheet of the liquidation.
  6. Other liquidation operations (paying debts, accountants actions).
  7. Preparation of the liquidation report.
  8. Shareholders Meeting.
  9. Physical distribution of assets if any remain.
  10. Finishing the liquidation.

Liquidation procedure usually takes minimum 7 months. It may take even longer than a year. That’s why it is important not to make any mistakes.

To ensure you gain the true market value of your business, pay off all debts, and properly evaluate and convert inventory to cash, it’s important to hire the services of a liquidation professional.

As you may see above company liquidation is a complex and time consuming process that requires to engage time and resources. In practice it is much more complicated than company registration in Poland. Using our company’s services, you save time and money.

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