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How to dissolve and liquidate a limited company

The steps to dissolve and liquidate a limited company should be subject to legal ground rules that we must follow.

To dissolve your Limited Company must distinguish three phases: dissolution, liquidation and termination of the accounting entries in the Registry. The causes of the dissolution may be diverse, but the most common is usually having reduced its capital below 3,005.06 euros.


Liquidation of the company

When the liquidators winding up a company can be established in the statutes or be appointed by the directors of the company. Normally both coincide in the same person. These are required to ensure the assets of the company, complete pending operations, sell assets, represent the company in all acts necessary and meet quotas partners resulting from the settlement.

The resulting fees are proportional to the shares, unless the articles of association provides otherwise. The liquidators have to perform these steps within a period of three months, finally disclosed the process to the General Meeting a balance sheet, which need not submit or post on any bulletin or newspaper, unlike the corporation.

Post-settlement Steps

The next steps for the dissolution of a Limited Company will grant deed before a notary the liquidation of the company incorporating a series of necessary documentation, such as the Final Settlement Balance, list of partners, etc.. This writing must be filed with the Commercial Registry of the province to cancel the accounts.

Finally, we must not forget that when you finish winding up a company, must be submitted a number of taxes. These are the payment of transfer tax and stamp duty (colloquially called ITP) by the concept of corporate transactions, settlement taxed at one percent.


This means that each of the partners will pay for this tax one percent of the value of their respective award. If, however, payment of the share of each partner is done by non-cash transactions, these transactions are subject to VAT at the rate applicable as the goods delivered.

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