Closing a business is possible through bankruptcy, liquidation and closing a company with a shortened procedure without liquidation. Each case has its own specificity.
Bankruptcy is carried out when there are bankruptcy grounds, i.e., the inability to pay and the company's over-indebtedness.
Liquidation is voluntarily carried out when the company's assets are sufficient to meet all of the company's obligations.
Closing a company with a shortened procedure without liquidation is possible with the consent of all members of the company.
The procedure continues as in the case of bankruptcy if liquidation is initiated, and it is established that the company does not have sufficient assets to meet all of the company's obligations.
Although the term "dormancy" of a company is often used, under which it is considered that the company is not operating, in such a case, the company continues to exist as a legal entity and is subject to all regulations and obligations arising from the existence of the company.
A company may be terminated by force of law and based on a special court decision if it has not submitted annual financial statements for three consecutive years.
