Liquidation issues are described in detail in the Commercial Code.
Types of winding up
A company commences liquidation on the day of its winding up. It ceases to exist as a legal entity the day it is removed from the Commercial Register. Before a company can be removed from the Commercial Register, it is usually necessary to complete a special liquidation process.
The voluntary winding up of a company is based on a decision of the partners in the company. It can be withdrawn up until the moment of completing the liquidation.
Another case of winding up a company without liquidation is when a bankruptcy petition is dismissed due to lack of assets.
Enforced winding up
Enforced winding up is decided on by a court at the instigation of a state authority or persons establishing a legal interest.
Before deciding on the winding up of the company the court sets a time period during which the company has a chance to eliminate the reason for which the winding up was proposed (where such elimination is possible).
When filing for bankruptcy is the only option left for a business owner, it pays to cut losses, initiate proceedings sooner rather than later, and move on to a new business project.
Single point of contact
Single points of contact (SPC) have been set up in selected trade licensing offices. The electronic single point of contact is the official portal for business and export, BusinessInfo.cz.
When a company is wound up it must be removed from the Commercial Register, and its social insurance must be cancelled and tax registration withdrawn at the places mentioned below.
Winding up processes may differ slightly depending on the company types. The following links inform about the specific steps that you need to take:
Whatever the company type, you have to deregister your company by submitting certain documents to the Commercial Register.
The fact that the company is in liquidation is recorded into the Commercial Register and the official note "company in liquidation" is added.
The administration of a company at the time of liquidation is carried out by a liquidator, who assumes most of the powers of the company's statutory body.
Social security deregistration
Regardless of the type of company, the organisation must be deregistered with the relevant district social security authority, no later than 8 days from the date of its dissolution, using the prescribed form.
An organisation must report a decision to wind up the organisation to the relevant district social security authority within 8 days of the delivery (notification) of such a decision.
Cancellation of tax registration
An organisation must cancel its tax registration at the relevant local tax office where it is registered, and this must be done in writing, by post, or in person within 15 days of the date when the facts occurred on which the cancellation is based.
The Commercial Register provides information on a company's status (wound up or in liquidation). It is a public database updated with all of the legally required information on business owners.
The following governmental and non-governmental web portals offer further information and useful services relating to winding up.