We provide services related to the liquidation and bankruptcy of companies.
LIQUIDATION OF A LEGAL ENTITY
Liquidation of a company is a complex and lengthy procedure. The process of liquidation of a legal entity takes much longer than the process of establishing and registration, and requires professional qualifications, financial expenses and a large amount of time.
The purpose of liquidation is to resolve all property issues, pay debts, and distribute the remaining property in accordance with the law. This is a process that can be carried out by a legal entity that has property. The company is considered liquidated from the moment of its extinguishment from the commercial register of the Czech Republic.
The decision on liquidation is made by the General meeting of founders, a document is drawn up in the form of a notarized Protocol. Contemporaneously, a liquidator is appointed. The liquidator can be either an individual or a legal entity.
Information that the legal entity is in the process of liquidation is sent to the commercial register. Information that the company is in the middle of a liquidation procedure should be published in the Trade Bulletin. It is also necessary to notify all creditors. By the day of entering into the liquidation procedure, an accounting report should be made and submitted to the tax office.
The Executive Director transfers all assets of the legal entity and all rights and obligations related to the company to the liquidator by this date. The liquidator shall draw up a Protocol of the transferred property and obligations. If the liquidator discovers that the legal entity is not creditworthy, he is obliged to file for bankruptcy of the enterprise.
If the legal entity does not have property, but only debts, it is necessary to conduct the bankruptcy process.