There are many causes of liquidation: bankruptcy, a career change, retirement, or a change in legal status. The liquidation process is long, complex and requires a certain degree of formality.
Liquidation: the key steps
In order to correctly liquidate a company, it is important to respect certain rules and steps. The first is to take the formal decision to dissolve the company and enter into liquidation. This decision must be made officially before a notary.
Within this context, the partners must appoint a liquidator for the completion of the stages of liquidation. The liquidator must namely:
- Make three announcements to creditors in the Swiss Official Gazette of Commerce (SOGC) in order that they might file their claims and demand payment.
- Establish a balance sheet for entering into liquidation and a balance sheet for the end of liquidation. If the liquidation period lasts too long, it will also be necessary to establish interim balance sheets.
- Inform the judge who will declare the company bankrupt if its assets do not cover its debts.
A liquidation procedure can last for several years depending on the complexity and the background of the company.
Three months after the third notice to creditors at the earliest, the liquidator can proceed to asset allocation and request removal from the Commercial Register provided that an auditing expert can confirm that all debt obligations can be covered. Failing this, asset allocation and the removal of the company from the Commercial Register may only take place after a period of one year following the final notice to creditors.
Liquidation: a complex legal and fiscal procedure
Liquidating a company is thus a complex task which often requires the support of legal professionals to ensure correct navigation through all of the legal and tax-related tasks to be completed.
Our tax and legal advisors have fully comprehensive expertise with regards to the liquidation process, for companies of all legal form. They are also experienced in meeting the tax obligations related to this final stage in the life of a company.