Closing a Company in Poland: A Complete Guide
Hello friends! You are on the channel “Life and Business in Poland.” My name is Vitaliy. I have been living in Poland for 8 years and most of that time I have been helping people develop their businesses. In this video, we will talk about a very popular topic right now: how to close a company in Poland. Let’s get straight to the point, and I will tell you about three ways to close a company in Poland. At the end of the video, I will also share some more interesting options for what you can do with a company since closing it is sometimes related to wanting to get rid of expenses and headaches.
Ways to Close a Company in Poland
There are several main ways to close a company in Poland, which we will discuss in detail.
Bankruptcy
The first way is bankruptcy. For a company to declare bankruptcy, it must be in a situation where it cannot fulfill its obligations. For example, if your contractor sends invoices and you are unable to pay them, you can declare bankruptcy.
It is important to understand that if a company has no debts, it cannot simply declare bankruptcy. If you receive invoices and do not pay them, this might become a reason for bankruptcy declaration, but this does not mean it is an easy path or that it will relieve you of all debts.
Liquidation
The second way is liquidation. A company can be liquidated when the owner decides to close the business, not when the company is in poor financial condition. The reasons may vary: maybe the company was opened for a certain period, or it has fulfilled the goals it was created for.
Liquidation is an official process that requires changes to be made in the registry. Poland has an open registry of all companies, and during liquidation, it will be indicated in this registry that the company is in the process of liquidation.
The liquidation process can take a long time—up to a year or more. Some lawyers charge from 10,000 to 20,000 PLN for liquidation, while others offer this for free. First, you will need to publish a notice of your intention to liquidate the company so all creditors can come to claim their money.
It is also important to fulfill obligations related to employees and company assets to complete the liquidation process.
Reorganization
The third way is reorganization. This option is used when a company changes its format, for example by merging with another company or changing its structure. Reorganization can be a good alternative to closing if you want to continue operating but in a different form.
Detailed Liquidation Procedure
To liquidate a company in Poland, you must follow a specific procedure. First, you make an agreement on cooperation, stating your decision to liquidate the company. Then you make changes in the national registry. After that, the process of settling debts and closing all matters begins.
Before starting liquidation, it is important to appoint people responsible for the procedures. These can be board members or separate specialists—lawyers or liquidation experts. If no one is appointed, the board members bear the responsibility.
The liquidation process includes the possibility of a public announcement of the liquidation status, allowing creditors to claim payments from you. After completing all obligations and transactions, you must submit a final balance sheet and again update the registry to confirm the liquidation.
More Interesting Options
If standard liquidation does not suit you, there are alternative options such as freezing or selling the business. In the case of freezing, you can suspend the company’s activity and reduce some costs, while keeping the legal address and reporting. Freezing is easier than liquidation and can last up to two years.
Sale of the Company
Selling a company can be a good option if you want to completely get rid of the business. Usually, if the company is registered electronically, the sale process can be done with minimal expenses. You will need to draft a purchase-sale agreement, update new addresses and owner data, then submit documents to the registry.
This process usually takes about four weeks. It is important for the buyer to receive all necessary information about the company to make it more attractive. This will allow you to get a better price, which is a nice bonus.
Conclusion
Closing a company in Poland is a multi-step and sometimes complicated process, but understanding the main stages can make this task easier. Whether you decide to liquidate, freeze, or sell the company, it is important to follow the laws and procedures to avoid additional problems in the future.
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