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Company liquidation in Poland

Company liquidation in Poland

By law, company liquidation in Poland can be carried out in two ways: voluntarily or involuntarily. In the voluntary scenario, the process occurs either when the director opts to retire or when the business ceases to serve any practical function. This initiation can only take place during a meeting attended by the company’s participants (founders, shareholders). A compulsory company dissolution typically begins with creditors and proceeds following a court hearing. This dissolution takes place when a company is unable to sustain its operations due to financial difficulties. The primary aim of this process is to distribute dividends to all identified creditors. This is crucial information for investors when embarking on a new business venture.

Liquidation of legal entity

Frequently, a company finds itself unable to settle its debts and faces a dire situation. In such cases, creditors may initiate a compulsory dissolution. They do so by petitioning the court, asserting that the company owes them a specific sum that it cannot repay. While the procedure resembles the voluntary dissolution, in this case, the court appoints the liquidator who oversees the entire process. Another procedure involves the directors of an insolvent company independently choosing and appointing a trustee in insolvency. Throughout this process, there is ongoing collaboration with accountants to ensure the proper distribution of remaining assets to the company’s creditors. In such instances, employing a company liquidation service is advisable. Throughout the process, specialists will draft reports and other financial documentation in compliance with current Polish law.

Liquidation services

Given that company liquidation is a significant process, it’s essential to entrust its management to experienced lawyers. They can ensure adherence to all legal requirements, prepare necessary documents, and, upon completion, notify relevant authorities and potential creditors about the company’s status. Additionally, these specialists can assist in preparing accounting reports and provide recommendations regarding the disposal of the liquidation balance sheet.

Once all legal requirements have been met, the lawyers will deregister the company from the Trade Register and carry out all other liquidation services to bring an end to the process.

Dissolution of the business

To effectively navigate this process, it’s advisable to engage a company liquidation service in Poland. Specialists will handle the preparation of required documents and their submission to the appropriate authority for review. However, it’s crucial to recognize that the liquidation process isn’t swift and may extend beyond a year, sometimes even longer.

Company dissolution

The dissolution of a company essentially involves its removal from the official register of the Registration Chamber, rendering it legally nonexistent. Typically, company dissolution is a voluntary procedure, though external initiation may occur in cases where the company fails to meet its obligations, particularly financial ones. The application for dissolution can be submitted online, alongside payment of a specific fee for liquidation services.

Preparatory Steps for Liquidation

To dissolve a company or business, you need to follow these steps:

prepare the relevant resolution stating the reason for dissolution;
notarize the document;
send a notice to the Trade Register of the country;
terminate client contracts and service agreements received by the company;
to prepare employee dismissals in accordance with the employment agreements;
to monitor the approval of the dissolution of the business in the Trade Register.

Completing all of the aforementioned points will assist the owner in upholding an impeccable business reputation and sidestepping legal issues. The company liquidation process typically spans about a year and is deemed finalized when the company has entirely ceased operations and has been delisted from the Trade Register.

Status of the company in liquidation

Currently, liquidation procedures for companies in Poland involve asset sales to settle debts with creditors and the formal closure of the business. During this period, the company’s name stays registered in the Trade Register, albeit its status shifts to “Liquidation”. The name removal typically occurs around three months after the dissolution is completed.

Understanding all the intricacies of the procedure, along with its stages of execution, significantly eases the journey through the entire process from beginning to end. While more time-consuming than launching a business, with the guidance of experienced lawyers, it can proceed smoothly and seamlessly. It’s crucial to seek assistance from professionals to alleviate concerns about any undesirable consequences or unfulfilled obligations to interested parties.