Once your operations have come to an end or you have decided to move your business elsewhere – it will be necessary to liquidate the company. This is particularly important if there are profits to repatriate, if the directors of the company wish to retain a clean record, and reporting requirements are to cease. Americans, in particular, need to liquidate to avoid filing Controlled Foreign Corporation returns with the IRS.
There is no need to engage an attorney – they just employee accountants. We can appoint a liquidator from our own staff with the legal, accounting, business and statutory knowledge to accomplish the task from beginning to end. We will work closely with you to identify creditors, collect from debtors and interface with legal, tax, court and other officials. We can do all of this on the basis of a power of attorney from the shareholder(s).
Liquidation of a Czech LLC (an “s.r.o.”) is primarily regulated under the Commercial Law, 513/1991 Sb, §68, §70-75 and §151-153. The process takes about 5 to 7 months to complete, from beginning to end. The major steps are as follows:
1. Hold a notarially-registered shareholders’ meeting to establish the date of liquidation and appoint a liquidator to manage the company through the process and file a petition to place the company into liquidation with the commercial court.
2. Prepare and file the tax return and liquidation balance sheet at date of entry into liquidation.
3. Publish the entry of the company into liquidation and record the claims of creditors, take measures necessary to shut down the operational activities of the company (ie, close bank accounts) and record them in the accounts. File a final tax return with the financial regulator and, perhaps, issue a liquidating dividend.
4. Pay all taxes due, obtain the approvals of the national archive, financial regulator and other government agencies.
5. Petition the court to strike the company.
This is a complicated but necessary step to closing operations of your company. Please feel free to contact us to discuss your situation.
