When you decide to give up your business in a certain field and direct your priorities on other markets, firstly you have to liquidate the firm you don't need any more. You should be aware of the procedure you must follow to finish your business in Italy.
Our local partners from Milan and Rome can offer assistance with company liquidation in order to finish more rapidly your business and maybe open a new firm in other field where there are more opportunities. If you are the business owner, you may decide to deregister your firm even if the balance sheet is different from zero.
Limited liability companies and partnerships can be liquidated in certain circumstances, related to company's activity. When company term expires, you can liquidate it or when the goal of your business is accomplished or cannot be achieved. Liquidation is a solution if you cannot develop further operation and the capital come below the minimum required by law. Also, a board decision or the conditions from the Company's Act permit the rapid liquidation of a firm.
You cannot close a company in Italy very rapidly, in just one day because you must follow the legal procedure. Firstly, you should have a registered office and an accountant who can handle the financial deeds through the whole period of liquidation and then you can start the procedure for dissolution.
Shareholders should meet at a public notary office and announce their intention to wind up the company and appoint a liquidator. Until the taxes are paid and the creditors of the company recover their debts, the firm will remain in “pending dissolution” for a year.
For companies in insolvency, there are three procedures of liquidation:
Compulsory liquidation is one of the most common winding up procedures employed in Italy when a public company is indebted. In this case, the process will be carried out by state officials. The main role of this procedure is to first find a solution to rescue the company. The process resembles the voluntary liquidation one as the debtor or the creditor may file a petition with a local court which will then refer to the governmental body supervising the entity. A liquidator will be appointed by the court. The liquidator will be a state representative and will be assisted by several experts. The liquidator will review the creditors’ claims and draft a reimbursement plan in order to extinguish the debt.
Extraordinary liquidation only applies in the case of Italian companies of national interest. This procedure implies the indebted company’s activities to be taken over by another company.
For assistance with the company liquidation procedure, do not hesitate to contact our company formation agents in Italy.