Company Liquidation in the Czech Republic

Liquidation or winding up is a way of discontinuing the activity of a legal entity. At the end of the liquidation process, the legal entity (company, association etc.) is eliminated from the Commercial Register. An appointed person, the so-called liquidator, carries out the process. Anyone can act as a liquidator, however since liquidation is a complicated process, many clients prefer to appoint somebody to act on their behalf.

What do we need to verify before starting liquidation?

At the start of the liquidation process, it is necessary to find out whether the company is overburdened with debt, i.e. whether it has more assets than liabilities (debts) towards creditors. In case it has more liabilities than assets and its creditors do not agree on writing off part of the debt, then instead of starting a liquidation process the company has to file for bankruptcy. If the company has more assets than liabilities or just as many assets as liabilities, it can proceed to liquidation. The same applies if the company has no liabilities or no assets.

I have decided to liquidate my company. How should I proceed?

It is easy! We will arrange an appointment at a notary’s, where the company’s supreme body (e.g. general meeting, i.e. owners) decide on the company’s filing for liquidation. At the same time, they will appoint a liquidator. From that moment, the liquidator takes care of the whole process.

What does the liquidator do?

The liquidator’s task is to evaluate all assets and settle all liabilities. This part of the process may require cooperation of the company’s statutory bodies (for instance during assets inventory, their handing over or approving the financial report). The liquidator has to take app. 25 different actions before the company can be eliminated from the Commercial Register.

How long does the liquidation process take and how much does it cost?

The liquidation process varies from one company to another depending on the amount of liabilities and the state of its assets. The process is not limited in time, however it takes at least 4 months (even in the case of a small company). This is due to the time limit set by law for publishing the intention to liquidate a company in the Commercial Bulletin and the 90-day waiting period that follows. This is why the liquidation process takes 4 months or more and the price can vary. The price for liquidating a company that is not in business and has no assets starts at CZK 35,000.

Price List Company liquidation

Prices exclude 21% VAT