Liquidation of a company (firm) in Europe

Many Ukrainians, having opened a business in Europe, encountered problems of running a business and came to the idea of ​​closing it.

Liquidation of a company in Europe is a complex process that requires compliance with numerous legal norms and procedures.

The liquidation process may vary by country, but the general conditions and requirements are often similar.

In this article, we will consider the main aspects of company liquidation, give examples of procedures in different European countries, and reveal the topic of liquidation through the purchase and sale of corporate rights.

Conditions and requirements for liquidation of the company

In order to liquidate a company, it is necessary to comply with certain conditions and requirements, which usually include:

• Making a decision on liquidation

The decision on liquidation is usually made at a general meeting of shareholders or participants of the company. This decision must be documented and registered with the relevant state authorities. Usually, these are state registration bodies or notary bodies.

• Appointment of liquidator

After the decision on liquidation is made, a liquidator is appointed, who will be responsible for the implementation of the liquidation process. The liquidator can be both an internal employee of the company (director, full-time lawyer) and an external consultant.

• Valuation of assets and liabilities

The liquidator must assess the company’s assets and liabilities to determine its financial condition. This includes an inventory of all company assets, as well as the identification and settlement of all debts and liabilities.

• Publication of liquidation announcement

In many countries, it is necessary to publish a notice of liquidation in official printed publications. This allows creditors to file their claims against the company.

• Settlement with creditors

After identifying all debts, the liquidator must ensure their payment. Only after that, you can start distributing the remaining assets among the company’s members. If there are not enough assets to settle the liabilities, the liquidator announces the bankruptcy of the company and starts the bankruptcy procedure.

• Submission of reports

At all stages of liquidation, the company must submit appropriate reports to tax authorities and other regulatory agencies.

Examples of company liquidation in different European countries

Germany

In Germany, the process of liquidating a company begins with a decision at a general meeting of shareholders. After that, a liquidator is appointed, who carries out an inventory of assets and liabilities.

A special feature is the need for three publications of the liquidation announcement in the Federal Gazette. The liquidator is obliged to ensure payment of all debts of the company and to submit the liquidation balance sheet to the tax authorities.

France

In France, the liquidation of the company also begins with the decision of the shareholders. A liquidator is appointed, who is responsible for managing the liquidation process.

French law requires the publication of a notice of liquidation in the official press and the settlement of all debts to creditors. The liquidation process requires careful compliance with all legal regulations and the completion of all necessary reports to the tax authorities.

Italy

In Italy, the liquidation of the company also begins with the decision of the shareholders. The appointed liquidator must register this decision in the Trade Register. The procedure includes assessment of assets and liabilities, publication of liquidation announcement, and settlement with creditors. After completion of all stages, the liquidator submits the final liquidation balance to the tax authorities.

Liquidation of the company through the purchase and sale of corporate rights

One of the ways to liquidate a company is the purchase and sale of corporate rights. This method allows you to avoid long and complicated procedures associated with official liquidation.

The procedure for buying and selling corporate rights includes the following stages:

1. Search for a buyer

Usually, a buyer is sought who is interested in acquiring the corporate rights of the company. It can be both an individual and another company (legal entity).

2. Company valuation

The value of the company is determined, which includes all assets, liabilities, and other financial indicators.

3. Conclusion of a sales contract

The parties conclude a contract for the purchase and sale of corporate rights, in which all the terms of the agreement are spelled out.

4. Reregistration of corporate rights

After concluding the contract, the buyer acquires the company’s corporate rights and reissues them in his own name.

5. Settlement of debts

After re-registration of corporate rights, the buyer undertakes to settle all debts of the company.

The liquidation of the company through the purchase and sale of corporate rights can be profitable, as it allows you to quickly resolve the issue of closing the business without the need to go through all the formal liquidation procedures.

Applying to the law firm “Prikhodko and Partners” for the liquidation of the company is a guarantee of receiving high-class legal assistance.

Thanks to many years of experience in corporate law and an individual approach to each client, “Prikhodko and Partners” will ensure that your case will meet all legal requirements and that the process of liquidation of the company in Europe will be easier.