Company liquidation in Switzerland is the process of closing a legal entity. It can occur for various reasons, including lack of profit, a decision of the owners, termination of activities, or non-compliance with the law.
There are two ways to terminate a business in Switzerland:
Both options are provided for by Swiss law and are legally clear procedures.
The procedure for liquidating a company winding in Switzerland is carried out in several successive stages:
Government agencies sometimes carry out on-site controls to verify individual data. We accompany a business at all stages of its termination. Typically, the entire procedure takes 3 to 9 months and entails minimal financial costs for the founders.
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| Voluntary liquidation | A company can be wound up by voluntary Swiss company liquidation if its shareholders or partners decide to do so. In this case, the company liquidation occurs voluntarily and not due to insolvency or by official order. |
| Swiss company bankruptcy | company liquidation may also occur as a result of insolvency. Insolvency occurs when a company can no longer pay its debts and becomes insolvent. In this case, insolvency proceedings may be initiated. Insolvency proceedings usually begin with filing an application to commence insolvency proceedings by the company or creditor. The court then appoints a temporary receiver to manage the company during Swiss company bankruptcy proceedings. |
The decision to liquidate a company is made by a resolution of the general meeting of shareholders in the case of an AG and by a resolution of the shareholders in the case of a GmbH. The decision is made in the presence of a notary, who draws up a public deed. The company liquidation is entered into the commercial register, and the name of the company is supplemented with the inscription “liquidated.”
The participants appoint a liquidator who is entrusted with selling the company winding up. A liquidator can also be appointed by a judge if one of the shareholders requests it for important reasons. The liquidator must apply to the Swiss Official Gazette of Trade (SOGC) to declare the debt. The purpose of such an announcement is to inform all creditors of the Swiss company liquidation and invite them to submit their claims within one year.
At this stage, company liquidation begins, which can sometimes last several years. The liquidator must inventory the assets and prepare a balance sheet that also takes into account the claims made as a result of the notice of debt repayment published in SOGC. He must cease current activities, fulfill the company’s obligations, and sell the property.
If the sale has been completed one year after the announcement of the debt settlement, the liquidator may request that the company be deleted from the commercial register. The one-year can be reduced to three months if a licensed audit expert confirms that the debts have been repaid and the interests of third parties are not at risk.
Company liquidation in Switzerland refers to the process of legally closing a business entity. It can be initiated voluntarily by the owners or due to insolvency, where the company can no longer meet its financial obligations.
You can close a Swiss company through two main methods: voluntary liquidation by the decision of the founders or by transferring ownership and management to new owners. Both options are supported by Swiss law and involve specific procedural steps.
Liquidating a company in Switzerland based on a decision involves several stages:
Voluntary liquidation occurs when shareholders or partners decide to close the company, typically due to strategic reasons or non-viability. Insolvency liquidation, on the other hand, happens when a company is unable to pay its debts, leading to legal proceedings to settle debts and liquidate assets.
The main stages of voluntary liquidation in Switzerland include:
The duration of company liquidation in Switzerland varies but generally ranges from 3 to 9 months. Complex cases may take longer, depending on the size of the company, its assets, and the extent of creditor claims.
Liquidating a Swiss company involves minimal financial costs for founders, primarily related to legal fees and administrative expenses. Costs may vary based on the complexity of the liquidation and professional services required.
Yes, creditors play a crucial role during liquidation by submitting claims against the company’s assets. They must be informed through public notices and have the opportunity to assert their rights within a specified timeframe.
Employee rights and obligations, including severance pay and notice periods, are typically addressed during liquidation. Employees are considered creditors for unpaid wages and benefits, ensuring their rights are protected throughout the process.
Yes, under certain conditions, the liquidation process can be expedited. For instance, if all debts are settled and confirmed by a licensed audit expert, the company can request deletion from the Commercial Register sooner, reducing the waiting period from one year to three months.
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