The Moor has done his duty, the Moor can go. This popular phrase can well be applied to a company that is no longer needed. The reasons why an owner decides to close an operating European company can be quite diverse.

Reasons for liquidating a company in Europe:

• The business activity has ceased to be profitable;
• The goal for which the company was opened has been achieved;
• Disagreements have arisen between the founders;
• The company is about to undergo reorganization.

Depending on the company's jurisdiction, there may be other reasons for its liquidation.

When it becomes obvious that the company is no longer needed, the question arises - what to do with it? The option to simply "abandon" the firm, not conduct business and not pay taxes is far from the best. IT-OFFSHORE specialists do not recommend passive liquidation in the case of European companies. In most European countries, even inactive companies are required to report to the state regulator. In addition, any creditor can make claims against a company that is actually inactive but not officially liquidated.

Procedures for liquidating a European company

The process of liquidating a European company is carried out in accordance with the legal norms of the state in which it was registered. At the same time, there are peculiarities in the liquidation procedure depending on the jurisdiction.

In general, to begin the liquidation procedure, the owner of a foreign company needs to:

• Organize information and financial reporting for the entire period of the company's existence;
• Provide reporting to regulatory authorities in compliance with the requirements established by the legislation of the respective jurisdiction;
• Pay outstanding tax liabilities;
• Notify interested parties, directors, creditors about the liquidation;
• Close bank accounts;
• Prepare documents indicating information about the company and the reasons for its liquidation.

The process of closing an operating European company usually takes about six months.

In European countries, the process of company liquidation requires strict adherence to legal procedures and consideration of current legislative requirements. Allow IT-OFFSHORE lawyers to competently resolve the issue of closing your business in Europe.