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Liquidation of a company in France
An entrepreneur who wants to finish his business in France can choose one of two types of company liquidation: the simplified procedure or the company liquidation in law, according to the Ordinance no.1345/2008.
The simplified liquidation can be requested in the court of justice for companies with no assets, one employee and sales up to 300,000 EUR. When the company has up to 5 employees, a turnover between 300,000 and 750,000 EUR and no assets, it can be applied the voluntary judicial simplified liquidation.
If the company has assets, many employees and a bigger turnover, it must be applied the company liquidation in law procedure. The persons involved in this type of liquidation are: a judge, a liquidator, the employees representatives and creditors controllers.
Before submitting the request for company liquidation, a few documents must be drawn up:
- a completed form from the Registry of the Commercial Court in Paris
- the company’s assets and liabilities
- the financial situation on the last year
- the certificate of registration for the company
- debts and receivables
- details about all the employees
- the figures regarding the sales
- names and residences of the creditors
- contingent liabilities
- debtor’s properties
- the list of employees representatives
- a sworn statement regarding the failure of opening a conciliation procedure in 18 months after the date of the application.
The liquidator mission is to establish the prices for the assets of the company that has to be liquidated and to verify the claims of the creditors. The reports related to liquidation of the company will be presented at every three months in court.
After the creditors are paid, all that remains will be distributed to the shareholders.
A simplified company liquidation may last a few months and the French company liquidation in law will take a few years.
If you need detailed information or assistance during the whole procedure of liquidation, you can contact our local lawyers.