{"id":1409,"date":"2023-11-06T13:56:18","date_gmt":"2023-11-06T12:56:18","guid":{"rendered":"https:\/\/milewska.legal\/?p=1409"},"modified":"2025-01-13T15:22:36","modified_gmt":"2025-01-13T14:22:36","slug":"liquidation-of-a-limited-liability-company","status":"publish","type":"post","link":"https:\/\/milewska.legal\/en\/liquidation-of-a-limited-liability-company\/","title":{"rendered":"Liquidation of a limited liability company\u00a0"},"content":{"rendered":"<p><b><span data-contrast=\"auto\">How to dissolve a limited liability company?<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">In practice, in vast majority of cases, a company is dissolved by a resolution of its shareholders recorded by a notary public.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The dissolution of a company follows <\/span><b><span data-contrast=\"auto\">liquidation<\/span><\/b><span data-contrast=\"auto\">. Liquidation is a mandatory procedure regulated by law \u2013 and it takes\u00a0months to finish. In practice, this means that several months, and sometimes even a year or more, pass between the decision to liquidate the company and its actual deletion from the National Court Register.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Opening of liquidation of a limited liability company &#8211; when does it occur?<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Liquidation is opened (i.e. commences) when a relevant resolution is adopted at a shareholders&#8217; meeting held before a notary public. Alternatively &#8211; for companies incorporated through the S24 system, resolutions are passed in the S24 system itself.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The following resolutions shall be passed at the meeting:<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">on the <\/span><b><span data-contrast=\"auto\">dissolution of the company and opening of liquidation<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">on the appointment of a <\/span><b><span data-contrast=\"auto\">liquidator<\/span><\/b><span data-contrast=\"auto\"> (who may be awarded a specific remuneration) &#8211; most often the liquidator is one of the members of the management board of the liquidated company, although there is no legal obligation to do so, and the function may also be performed by a person from outside the group of shareholders or the management board<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">on the <\/span><b><span data-contrast=\"auto\">manner of representation of the company <\/span><\/b><span data-contrast=\"auto\">(when several liquidators have been appointed, they may represent the company jointly or separately).<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"auto\">Once the resolutions have been passed, the opening of the liquidation is reported through the Court Register Portal \u2013 Portal Rejestr\u00f3w S\u0105dowych (for &#8220;classic&#8221; companies) or through the S24 system (for companies established in this system), respectively. The deadline for reporting the liquidation is 7 days from the adoption of the resolutions. During this time, a change of information about the entity must also be reported to the Tax Office (on form NIP-8).<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">In the initial phase of liquidation, the accountants prepare financial statements for the period from the beginning of the financial year to the day preceding the day of liquidation and the so-called liquidation opening balance sheet. In turn, the shareholders approve these documents by resolution (this time without the requirement of the form of a notarial deed). <\/span><b><span data-contrast=\"auto\">The financial statements (together with the resolution approving them) are to be reported to the Repository of Financial Documents \u2013 Repozytorium Dokument\u00f3w Finansowych.<\/span><\/b><span data-contrast=\"auto\"> The opening balance sheet of the liquidation will form the basis for the preparation of the next financial statements.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Another procedural requirement will be the passing of resolutions approving the management report on the company&#8217;s activities (if the company is not exempted from this obligation) and discharging the members of the management board.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Liquidator &#8211; who is it?<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">A liquidator is a person appointed by the company&#8217;s shareholders to effectively close down the company&#8217;s business and to represent it for the duration of the liquidation. Within the scope of their competences, <\/span><b><span data-contrast=\"auto\">they may be regarded as the equivalent of a member of the management board for the time of liquidation of the company<\/span><\/b><span data-contrast=\"auto\">. Thus, the role of the liquidator will be to terminate contracts concluded by the company, pay debts and collect receivables. The liquidator will also be the person representing the company. <\/span><b><span data-contrast=\"auto\">A member (or members) of the board of directors is usually appointed as liquidator, although there is no legal obligation to do so.<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Entry of the opening of liquidation in the KRS &#8211; what next?<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">After opening of the company&#8217;s liquidation is entered into the National Court Register, a <\/span><b><span data-contrast=\"auto\">14-day period starts for the report of changes<\/span><\/b><span data-contrast=\"auto\"> (of the company&#8217;s name &#8211; the indication &#8220;in liquidation&#8221; should be added and of the representative person &#8211; from the management board to the liquidator) <\/span><b><span data-contrast=\"auto\">to the Central Register of Beneficial Owners<\/span><\/b><span data-contrast=\"auto\">. The notification to the CRBO is made by the <\/span><b><span data-contrast=\"auto\">liquidator.<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">At this point, the liquidation of the company must also be announced in the Court and Commercial Gazette &#8211; Monitor S\u0105dowy i Gospodarczy. The announcement includes a summons to the company&#8217;s creditors to report their claims within 3 months from the date of the announcement.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Six months after the announcement<\/span><\/b><span data-contrast=\"auto\"> of the liquidation in the MSiG, the remaining assets of the company after payment of creditors are distributed to the shareholders and the liquidation itself may be completed.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Completion of liquidation &#8211; what does it look like?<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The completion of liquidation consists of a number of steps. The accountants should prepare a financial report for the period from the date of the opening of the liquidation to the date prior to the distribution of the assets by the shareholders &#8211; the so-called liquidation report. <\/span><b><span data-contrast=\"auto\">This document is subject to filing with the Repository of Financial Documents<\/span><\/b><span data-contrast=\"auto\"> (together with an approval resolution).<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">After the distribution of assets, the shareholders of the company also adopt the following resolutions:<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">on granting a discharge to the liquidator<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">on approval of the liquidator&#8217;s report on the company&#8217;s activities<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">on approval of the liquidation report<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">on approval of the distribution of the company&#8217;s assets to the shareholders<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">on dismissal the liquidator from his function<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">on confirmation of completion of the company&#8217;s liquidation<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">on appointment of a custodian of the company&#8217;s documents and books<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"auto\">The last step needed to dissolve the company is filing <\/span><b><span data-contrast=\"auto\">an application for deletion of the company from the National Court Register<\/span><\/b><span data-contrast=\"auto\"> through the Court Register Portal or the S24 system.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">What about liquidation of a company with debts?<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">In the course of liquidation, a situation may occur in which the company&#8217;s assets are not sufficient to pay off its debts. <\/span><b><span data-contrast=\"auto\">However, the law does not prohibit a deletion of a company with debts from the National Court Register<\/span><\/b><span data-contrast=\"auto\">. It is only the deletion of a\u00a0company with assets that is prohibited &#8211; this, in practice, means the non-completion of liquidation activities.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">In such a case, despite the deletion of the company from the register, the debt remains. Pursuant to Article 299 of the Companies Act &#8211; <\/span><b><span data-contrast=\"auto\">the members of the company&#8217;s management board or liquidators then become liable for the company&#8217;s debts<\/span><\/b><span data-contrast=\"auto\">.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><i><span data-contrast=\"auto\">Aleksandra Kostrzewa<\/span><\/i><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><i><span data-contrast=\"auto\">attorney trainee\u00a0<\/span><\/i><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Decision to wind up a business sometimes appears to be necessary. But how do you dissolve a company? What is a liquidation? What does it involve? How is it carried out? The answers to these questions can be found below.<\/p>\n","protected":false},"author":12,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[43],"tags":[],"class_list":["post-1409","post","type-post","status-publish","format-standard","hentry","category-commercial-companies"],"acf":[],"_links":{"self":[{"href":"https:\/\/milewska.legal\/en\/wp-json\/wp\/v2\/posts\/1409","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/milewska.legal\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/milewska.legal\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/milewska.legal\/en\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/milewska.legal\/en\/wp-json\/wp\/v2\/comments?post=1409"}],"version-history":[{"count":2,"href":"https:\/\/milewska.legal\/en\/wp-json\/wp\/v2\/posts\/1409\/revisions"}],"predecessor-version":[{"id":2266,"href":"https:\/\/milewska.legal\/en\/wp-json\/wp\/v2\/posts\/1409\/revisions\/2266"}],"wp:attachment":[{"href":"https:\/\/milewska.legal\/en\/wp-json\/wp\/v2\/media?parent=1409"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/milewska.legal\/en\/wp-json\/wp\/v2\/categories?post=1409"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/milewska.legal\/en\/wp-json\/wp\/v2\/tags?post=1409"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}