How can you liquidate your company in Italy?
For liquidating your company in Italy, you must follow a few steps and know the major procedures according to the Italian law. If the shareholders decide to close the company, it is a voluntary liquidation and if a third party asks for the company liquidation for legal reasons (such as a debt), then it is a compulsory liquidation.
In both cases, you must appoint a liquidator, according to the Civil Code in Italy. His mission is to conclude the legal procedure and to verify the documents for company liquidation.
The voluntary liquidation can be requested in certain situations:
- after the expiry date of the company, according to the articles of association;
- when the company has achieved its goals;
- there is no minimum capital required;
- the company is not active for a long time
- the shareholders decide to close the company after a general meeting.
For the compulsory liquidation, the local court will decide after the judges examine the request from the creditors or other third party who is interested in company’s liquidation. If the company pays its debts to the creditors, it is allowed to continue its activity, but if it refuses or can’t pay anything it will be declared in insolvency.
The liquidation for bankruptcy of a company can be started after the request sent by a creditor, debtor or court. The judges will decide if the company is insolvent and, in this case, it will be appointed a delegated judge and a bankruptcy trustee. The court will hear the claims regarding the bankruptcy and it will decide if these are approved or not. After the situation of the claims is clarified, the liquidation process will be closed.
A liquidation of a company in Italy may last at least six months, but it may take several years if there are many or complex issues to be solved.
If you need more information about the company liquidation in Italy, you may contact our law firm in Italy and our attorneys will handle the entire procedure.