Winding up - Czech Republic
Liquidation issues are described in detail in the Commercial Code.
Types of dissolution
A company commences liquidation as of the day of its dissolution. It ceases to exist as a legal entity on the day it is removed from the Commercial Register. Before a company can be removed from the Commercial Register, it is usually necessary to go through a special winding up process.
Voluntary dissolution of a company is based on a decision of the company's partners. It can be withdrawn up until the moment of completing the liquidation.
Another case of dissolving a company without liquidation is when a bankruptcy petition is denied due to lack of assets.
Enforced dissolution is decided on by a court at the instigation of a state authority or persons professing a legal interest.
Before deciding on dissolution of the company the court stipulates a time period, in which the company has a chance to eliminate the reason for which the dissolution was proposed (where 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.
With the dissolution of a company it is necessary to remove it from the Commercial Register, remove the company from social insurance and cancel the tax registration at the places mentioned below.
Dissolution 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 a number of documents to the Commercial Register.
The fact that the company is in liquidation is recorded into the Commercial Register and the official addendum "company in liquidation" is added.
The administration of a company at the time of liquidation is carried out by the so called 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, on the prescribed form.
The organisation must report to the relevant district social security authority a decision to wind up an organisation within 8 days of the delivery (notification) of such a decision.
Cancellation of tax registration
The 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 (dissolved or in liquidation). It is a public database updated with all legally required information on business owners.
The following governmental and non-governmental web portals offer further information and useful services on dissolution issues.
Check also the legislation on this topic in: