How can a company be liquidated in Liechtenstein?
There are two ways a company can be liquidated in Liechtenstein - by the member's decision (voluntary) or by a court’s order (involuntary).
The reasons on which the decision of legal entity's liquidation is based can be one of the following:
- if the articles of association stipulates a termination date,
- if the general meeting of the shareholders or the general partners decide so (decision which was voted by at least two-thirds of the shareholders or other majority),
- by court judgment (where dissolution is requested by a wholly liable member or by members who represent at least one-tenth of the capital),
- by opening bankruptcy proceedings on grounds of over-indebtedness or insolvency.
From the moment the decision is taken, the company name must be followed by the termination “in liquidation” on all the official documents. The legal entities registered in the Public Register cannot be liquidated until six months have passed from the third call to creditors.
The former management body is replaced by a liquidator which takes all the decisions necessary to complete the process in good conditions.
What are the steps for company liquidation in Liechtenstein?
The first step after the beginning of the liquidation process is elaborating a winding-up balance stating all the entity's assets. The former administration must assist the liquidator in the process of elaboration and must deliver all relevant records and business papers.
All the known creditors must be announced regarding the beginning of the process in writing, while all the other creditors must be notified through announcements made in the relevant newspapers regarding this process. The liquidators must simultaneously ask in court for the discontinuance of all processes not relevant for the process of liquidation.
All the claims must be covered and not sooner than six months from the decision of liquidation, the liquidator must distribute the remaining assets to the entitled shareholders and beneficiaries.
After taking this step, the liquidator must notify the Public Registry and ask for the cancelation from the Register. Only after taking this step, the liquidator can be released from its function.
How long does it take to liquidate a company in Liechtenstein?
The process of liquidation of a Liechtenstein entity depends on many factors, but the applicants must be aware that, for example, the distribution of the assets to its shareholders cannot be performed sooner than six months from the initial decision and the cancelation from the Register also cannot be performed sooner than six months from the beginning of the process.