A company liquidation occurs when there is no interest in continuing pursuing the business and the property is not going to be transferred, or there is a general bankruptcy that prevents from continuing the activity.
In order to pursue the liquidation all partners need to agree on it and there cannot be any workers or partners owned money to. All working relationships need to be legally finished before proceeding with the company liquidation.
The liability of the partners will depend on the legal type of organisation; in the previous point where the types were explained it is possible to see the liability related to each of them.
Also, there is a series of legal procedures related to liquidation. Most of these procedures are very similar as the ones done in the creation of the organisation, but with the opposite intention:
- Tax Register Declaration of ending activity in the Register of Business from the corresponding Tax Register Agency.
- Leave of the partner or person, if necessary, in the general regime of Social Security.
- Communication of the definitive ending in the Business Register.
- Dissolution of the society in front of a Notary.