Winding up a Czech Company
If any unforeseen circumstances prevent making business as usual, and it becomes clear that a company is no longer profitable, it is advisable to dissolve the company. Regulated United Europe team will assist at all stages of company dissolution.
Company liquidation is a legal process resulting in a complete termination of financial and economic activities of the company and removal of the company from the Czech Commercial Register. Specialists of Regulated United Europe will help you to complete the company dissolution procedure in the shortest time in full compliance with the law and completely remotely.
It is impossible to carry out the procedure of dissolution of the company without qualified legal support. Therefore, we will be happy to advise you on any questions you may have and to prepare and submit all necessary documents to get rid of the company you do not need as soon as possible.
When it comes to dissolving a Czech company, several options are available, including bankruptcy. Here, we provide an overview of the winding-up process and the option of bankruptcy, and how our services can assist you in these challenging situations.
Liquidation of a Czech Company
This is the process where the owners of a company decide to liquidate it. It usually involves the following steps: passing a resolution to liquidate at a general meeting of shareholders or founders, appointing a liquidator, finalizing all current affairs, paying debts, distributing the remaining assets to shareholders and filing the liquidation application with the Commercial Register.
Stages of company dissolution:
- Preparation of the resolution on dissolution of the company
- Appointment of a liquidator/bankruptcy trustee of the company
- Asset Inventory and Valuation/Asset liquidation
- Tax and Regulatory Compliance
- Communication with government authorities
- Filling out the necessary forms to the registration centre
- Posting a notice of dissolution in the public domain, followed by notification to all known creditors
- Preparation and making the final balance sheet
- Submission of all documents to the state archive
- Payment of the state fee
- Deregistration of the entity
Assistance in company dissolution:
To start dissolution of a company please contact us and specify details of the company to be dissolved. A final accounting report is needed for dissolution of your company. You can provide it to specialists of Regulated United Europe if it is already prepared in advance. If not, we can help you prepare the necessary reports.
Basic conditions for dissolution of a Czech company:
- The procedure takes about 6 to 12 months
- To start the procedure, the accountant must be given access via power of attorney
- To start the procedure, the company must submit certain financial statements, including annual reports
- Before dissolution, the company must not have any debts
Winding up a Czech company is a complex and legally regulated process, and selecting the right approach is crucial. Whether you opt for voluntary dissolution or bankruptcy, our services are designed to help you navigate these challenging situations, protect your interests, and ensure a smooth and legal winding-up process. If your Czech company is facing financial difficulties or considering dissolution, our expertise is here to assist you in making informed decisions and executing a successful wind-up strategy.
| Assistance in company dissolution |
from 800 EUR |
FREQUENTLY ASKED QUESTIONS
What is the procedure for the liquidation of a legal entity?
After notarisation of the founders' resolution, the liquidation process begins. It involves the following steps:
- appointment of a liquidator to whom the functions of a director are transferred;
- entering data into the state register;
- preparation of a financial report;
- taking inventory;
- informing creditors of the debt repayment terms;
- notification of the liquidation of the regulatory authorities;
- cancellation of contracts with employees and payment of wages;
- closing bank accounts;
- Archiving of documents;
- distribution of the liquidation balance among the owners (first the nominal value of the contributions is paid to everyone, and the remaining part is divided into equal parts or shares);
- removal of the company from the commercial register.
Tax audits are also often conducted during the closing process. However, if the company is liquidated without assets and debts, this control can be avoided.
How long does it take to liquidate a legal entity?
The liquidation of a limited liability company with debts requires the fulfilment of three main stages. The first is preparation, when the decision is made and confirmed, a liquidator is selected, and a transfer protocol (list of contracts, property, statements, etc.) is drawn up. The second - the liquidation process, which consists of drawing up a financial report, inventory of property, notification of creditors and state authorities. And the third is direct closure. This is the period when debts are repaid and all the obligations of the legal entity are fulfilled, the balance of funds is distributed among partners, and then the record of the company in the commercial register is deleted.
The whole process takes an average of 4 months, even if a minimum number of documents are prepared. However, sometimes liquidation can take 6-8 months - it all depends on the state of affairs in the company and the peculiarities of the process.
What are the steps involved in the liquidation of a Czech company?
The liquidation of a Czech company consists of three stages: cancellation, liquidation and dissolution of the limited liability company.
- Cancellation of SRO
The first step is to dissolve the limited liability company. The partners may decide to do so by agreement, or there may be a vote of the general meeting, where a two-thirds vote of all partners is required for dissolution. Whatever the form, it cannot be done without it according to Act No. 90/2012 Coll. without a notarisation.
- Liquidation of SROs
Except for exceptions (e.g. in case of transfer of the company's assets to another legal entity), the liquidation of a limited liability company follows the liquidation, which is managed by a special body - the liquidator. The purpose of the liquidation is primarily to settle property relations, debts and claims. At this stage, the company still exists, but it can no longer carry out its business activities. The process can be terminated as soon as all legal and financial relations are settled.
- Dissolution of the SRO
After the liquidation is completed, the last step may take place, namely the removal of the company from the commercial register and the liquidation of the s.r.o. itself. The proposal for removal is submitted by the liquidator within 30 days from the end of the liquidation.
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