Closing the business without winding-up proceedings – private individuals
Private individuals conducting their individual business activities on a sole proprietorship basis under an entry to the registry of economic activities may close their operations at any time, without necessary formal winding-up procedure.
Winding-up procedure according to the Polish Code of Commercial Partnerships and Companies
The procedure of winding-up (liquidation) of a company is a formalised process consisting of several stages, leading to effective closing of the operations of the company, which then ceases to exist. This procedure may be conducted effectively only if the entrepreneur has sufficient funds for closing the company’s business, including satisfying or securing the rights of creditors and shareholders of the company. Dissolution of the company takes effect only on the completion of liquidation, as of removal of the company from the register. Liquidation is conducted under the company’s current corporate name with an additional designation ‘in liquidation’. During the winding-up procedure, the company retains its legal identity. Pending liquidation, profits shall not be paid out to shareholders, even partly, nor shall assets of the company be divided before all obligations of the company have been discharged. The opening of liquidation procedure shall cause the procuration (special power of attorney) to expire. During the period of liquidation, procuration shall not be granted.
Business entity liquidation and de-registration can be a daunting and complex process. Professional assistance will save a lot of time and money, getsix® can also support our customers in this field. The approach depends on various conditions, especially time limitation and the financial situation of your company. Without specialist knowledge you may fall at the first hurdle and it is better to close or wind up the company in Poland cleanly, without leaving a stack of administration liabilities behind you.
The procedure for liquidation of a company is highly formalised, comprising of several stages. Dissolution of the company by way of liquidation is possible only if the company is solvent and has sufficient funds available to complete the process of liquidation (or if these will be financed by the shareholder). This means that funding must be available to satisfy the rights of creditors and shareholders. In order to ensure that the Polish company is closed in the proper manner and in the quickest possible time frame. getsix® can provide a full package of bespoke services according to your individual/corporate requirements.
Company liquidation (winding-up, striking off) in Poland
- Preparation of necessary documents and resolutions on the commencement of liquidation, and the appointment of a liquidator;
- Providing the appropriate person as a liquidator for the company;
- According to client’s instructions: closing all current issues, collecting debts, receivables, liabilities settlement and assets disposal;
- Preparation of all financial statements required in the process of liquidation;
- Preparation of all required shareholders resolutions and liquidator’s reports;
- De-registration of the company from the court and other authorities;
- Storage of liquidated company records for the statutory period of time.
Note: This procedure may take up to 9 months.