Both companies and partnerships (jointly referred to as “companies”) may be subject to liquidation. The main goals of this process are to terminate the operation of the company, finalize its ongoing undertakings and also monetize the company’s assets. The provisions on liquidation of Polish companies and partnerships are stipulated in the Commercial Partnerships and Companies Code. The process of liquidation of a company is compulsory, sustaining its legal personality until its removal from the register. However, the liquidation of partnerships is set forth quite otherwise. Namely, the liquidation process is merely optional. This means that one can simply remove the partnership from the register without initiating the formal process. It is worth keeping in mind, however, that limited joint-stock partnerships are an exception in this respect. They are subject to the same formal procedures of liquidation as joint-stock companies.
If you want to carry out the liquidation process of a Polish company in a safe way and without complications, you can count on our professional help. We will analyse the situation of your company and advise which solution will be the most favourable in a particular case, in order to bring the expected results.
The company’s liquidation is a decision belonging to the members of the company’s management board, who have decided to terminate their business. No matter what decision you make, we will guide you through the entire process. We offer support at every stage of the liquidation proceedings. What is important is the sequence of actions taken as well as thoroughness that will ensure your company the desired effect – a correct and effectively carried out liquidation proceeding.
The scope of our service of liquidation of Polish companies
We assist our clients in:
- reporting the liquidation,
preparation of necessary documentation
- conduct of required actions (such as finalizing the ongoing, undertakings),
- applying for removal of the entity from the register.
We represent the shareholders throughout the whole procedure of liquidation of a company and offer:
- professional support in making a decision whether the company’s liquidation will bring the entrepreneur the expected results;
- providing support with regard to conducting required and necessary activities in the course of the company’s liquidation proceedings.
- preparing a complete list of the company’s creditors and debtors;
- providing support in finalising the company’s current operations.
Liquidation of partnerships in Poland
An important aspect of carrying out a liquidation process of a partnership is the occurrence of the cause of liquidation. One example cause is the lapse of time for which a partnership had been formed. Assigned liquidators (all the partners or only some of them) will notify the competent register court of the initiation of liquidation. In the meantime, the liquidator’s obligation is to finalize the ongoing undertakings, collect the due receivables and monetize the assets. The assets gathered thereby are used to cover the liabilities of the partnership. Only the portion remaining can be divided between the partners in line with the provisions of the partnership agreement. Having performed the foregoing, the liquidators may apply for removing the partnership from the register.
Liquidation of companies in Poland
When liquidating a company, the cause of liquidation must also occur. The liquidators are usually a member of the managing board. They report the initiation of liquidation to the competent register court and announce it in the Court and Commercial Gazette (Monitor Sądowy i Gospodarczy). Their other obligation is to prepare a balance sheet of initiation of liquidation, which is necessary for arrangement of division of the company’s assets. Once the meeting of shareholders confirms the sheet, the liquidators must finalize the ongoing undertakings and collect the due receivables. Only then can they divide the remaining portion of the assets – according to the shares they hold.
After the finalization of the liquidation process, it is necessary to apply for removal of the company for the register. It is worth noting that there are certain differences in liquidating joint-stock companies and limited joint-stock partnerships. The latter does not require announcing the fact in the Court and Commercial Gazette (Monitor Sądowy i Gospodarczy).
Are you looking for a professional assistance in the process of liquidation of your Polish company?
CGO Legal is an experienced legal partner with whom the achievement of your goals will be faster, safer and more comfortable. Should you wish to know more about our service of liquidation of Polish companies, please do not hesitate to contact us.