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Company liquidation in France

Company liquidation in France

Updated on Monday 18th April 2016

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Company liquidation in France is the process that follows the dissolution of a commercial company. The liquidation phase begins as soon as the dissolution is pronounced and has the purpose of settling any debts of the company and paying all the existing creditors.
 
The liquidation procedure in France is regulated by various article and decrees. The procedure can also be regulated by the by-laws of the French company or through an agreement between the founding partners. Our French lawyers can help you throughout the entire company liquidation process.
 

Types of company termination in France

 
The dissolution of a company can be voluntary or ordered by court. After the dissolution is agreed upon or ordered, the liquidation phase begins. During this time, the company continues to exist but its sole purpose is to settle any existing debts. The legal entity can no longer perform commercial activities or be transformed into another French company. 
 
During the liquidation, the company shall include the fact that it is undergoing this stage in its name. After the liquidation is complete, the company is removed from the Trade Register. It is impossible for the business partners to cancel the procedure and restore the company once the dissolution and liquidation have entered into effect.
 

The liquidation procedure in France

 
When the dissolution is requested internally, a liquidator is appointed during a general shareholders meeting. He or she can be a professional liquidator or one of the former company managers who undertakes to perform this phase. The individual will represent the company throughout the liquidation procedure and will perform all and any necessary activities for completing the liquidation. 
 
When the liquidation is ordered by a court in France, the liquidator will be appointed by court. The company’s representative will have to prepare the documents needed for company liquidation in France. They usually include a filled in standard form, the most recent annual accounts, a list of assets, receivables and the company employees and also identification details for the company’s representatives.
 

Assistance offered by French lawyers

 
The liquidator must issue periodical reports about the status of the procedure. He or she must also verify any existing claims from creditors and draw up financial statements, as needed. When the process is complete, the appointed individual must prepare the final company accounts. A general shareholder’s meeting will take place at this time so that the shareholders can approve the final accounts.
 
The liquidator will make a request to de-register the company from the Commercial Register. The application should be submitted within one month after the termination of the liquidation phase. If the request is not submitted, the company can be automatically removed from the register within three years. 
 
The entire company liquidation procedure should not take more than three years after the decision to dissolve the company. Any remaining assets of the company are distributed among the shareholders but only after every creditor has been paid off. 
 
Because the final purpose of the liquidation procedure is to pay all creditors, the liquidator will need to perform a thorough debt collection. Our lawyers in France can assist you throughout this procedure and help you settle any litigation. 
 
Our law firm in France can provide complete assistance for the liquidation of a commercial company in France. Please contact our office in France if you want to deal with other legal matters, such as opening a company in France.

 

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