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.
Winding up a business generally consist of the following phases, unless a change in ownership is taking place:
- Notification of winding-up is forwarded to the trade register. Notification of winding-up is forwarded to the trade register. If a company's activities have required a permit, the party which issued such a permit should be notified of the termination of the company's activities.
- Social security payment and tax liabilities are settled.
- Equipment, stocks and office furniture are sold.
- The remaining liabilities of the company are settled.
The Tax Administration must be notified if business activity ceases.
Such notification is made on a final declaration form, which can be found on the Finnish Business Information System (BIS) website. The trade register also obtains information about cessation of business activity through the BIS.
If the reason for cessation of business activities is corporate trade, a copy of the trade register extract is annexed to the declaration. If business activities end in bankruptcy, a copy of the court judgment imposing bankruptcy is annexed. If the company merges, a copy of the trade register extract mentioning the court's granting of permission to merge is annexed.
Amendments and declarations to the authorities are made using Y forms in the Finnish Business Information System (BIS).
The Trade Register contains information about amendment notifications and final declarations.
The Tax Administration website provides information on winding-up of various types of businesses.