At the beginning, entrepreneurs are enthusiastic and eager. But when the business does not run as expected and problems emerge, they can get frustrated and de-motivated and reach the conclusion that it makes no sense to continue in the business. But even in such cases it is necessary to meet the legal obligations and end the business in compliance with the law.

If you do not want to invest much and approach a law-firm, the most suitable alternative will be to visit a notary office. In this way you gain the certainty that with the notary's expert assistance - you will meet all the stipulated legal obligations and need not to fear to receive an unpleasant registered letter from an authority or creditor a few years later.

You should also not forget that an entrepreneur – a natural person, is liable with all his/her assets - even after the end of the business activity. An owner of a limited liability company is liable only up to the amount of the company's basic capital. When liquidating the company, you must provide documentary proof that your Ltd.-company does not own any assets and that is has no open obligations towards the tax-authority, the social insurance or health insurance companies.

 

How to liquidate a company

There are three ways of liquidating a company without filing a petition for bankruptcy. You can sell your business share, fuse with another company (§69 of the Commercial Code) or - last but not least - you can also liquidate the company according to the sections §70 through 75 of the Commercial Code once and for all. The quickest and simplest way is to sell the share to third person. There is a demand on the market for debt-free and legally operating companies. The potential new owner will save fees and time in this way. The risk is hidden debts, which were not recorded in the company's accounting.

 

In the secure way 

If the Ltd.-company has only one partner, there is also only one business share. If your transfer it based upon an agreement on the transfer of a business share, the company (as a legal entity) will continue existing under the same name and ID-number - but with a different owner. The best way is to change the residence as well as the commercial name of the company along with the owner. You can do this following the decision of the general assembly, from which a notarial protocol should be drawn up. The agreement on the transfer of a business share is governed by section §115 of the Commercial Code and must be drawn up in writing, with the signatures of both parties notarially certified and the new partner must declare that he accedes to the deed of association. Within 90 days following the end of the company's liquidation process, the receiver files a request for the deletion of the company from the Business Register. The judicial fee for the deletion of a Ltd.-company from the Business Register is stipulated in the price list.