Legal Framework for Liquidation in the Czech Republic
The liquidation of legal entities in the Czech Republic is governed by several pieces of legislation. The primary act is the Zákon o obchodních korporacích (Business Corporations Act) — Act No. 90/2012 Coll. It establishes the rights and duties of the liquidator, the procedure for distributing the liquidation surplus among shareholders, and the specifics of liquidation for different legal forms.
General rules on the liquidation of legal entities are contained in the Civil Code (Zákon č. 89/2012 Sb., občanský zákoník) — Sections 187–209. Publication requirements for creditors are governed by the Obchodní věstník (Commercial Gazette). Tax legislation (Zákon č. 586/1992 Sb. on income tax) applies to the financial reporting of a company in liquidation.
Act No. 90/2012 Coll. expressly provides that the liquidator must be an individual who meets the requirements applicable to members of the company’s executive body: legally capable, without a criminal record, and without any impediments to carrying out business activity.
The Liquidation Process: Step by Step
Power of Attorney
Preparation and signing of the power of attorney (or powers of attorney) authorising COREDO to act on your behalf.
Transfer of Ownership and Resignation of Directors
The company’s ownership and shares are immediately transferred to another entity, and the current directors of the company resign.
Appointment of a Professional Liquidator
A professional liquidator is appointed to oversee the liquidation process.
Notary and Commercial Register
COREDO coordinates with the notary and registers all changes in the Commercial Register within 3 business days.
Final Formalities
All remaining formalities related to the liquidation of the company are resolved. Once the process is completed, you are no longer listed as a shareholder or director of the company.
Liquidation Timeline
COREDO’s liquidation package is typically executed within up to 1 week from the date of receipt of all required documentation: all changes are registered in the Commercial Register within 3 business days, and once the process is completed you are no longer listed as a shareholder or director of the company.
The statutory liquidation that the appointed liquidator then conducts takes longer: its minimum timeline is 4–5 months. This minimum is determined primarily by the mandatory three-month waiting period for creditors following the second publication in the Obchodní věstník.
In practice, the average liquidation takes 6–12 months. The following factors affect the timeline: the existence and number of creditors, the complexity and volume of the company’s assets, the need to settle tax liabilities, the speed of obtaining the tax clearance certificate from the finanční úřad, and the existence of employment contracts and pending litigation.
For inactive companies with no debts or assets, the procedure is completed within the minimum timeframe. Companies with active operations, outstanding liabilities, or property require a longer process.
Why Choose COREDO
Fast and efficient process
All changes are completed in the Commercial Register within 3 business days.
An experienced legal team
The procedure is led by the COREDO legal team under Pavel Kos, Head of Legal. The team coordinates with notarial offices and the relevant authorities to ensure full compliance with Czech law.
Complete transfer of responsibility
Once the process is completed, you are no longer listed as a shareholder or director of the company.
Transparent fixed price
A fixed one-time fee for the package, stated plus VAT, with no hidden charges in the future. Notarial fees, state duties and archiving costs are not part of our price and are agreed individually.
Our Experts
Liquidation procedures at COREDO are led by the legal team. Key specialists supporting liquidation processes:
Frequently Asked Questions
If you are considering the liquidation of a Czech legal entity or wish to explore alternative options, contact COREDO’s specialists. We support foreign business owners at every stage of liquidation procedures in the Czech Republic. Get in touch and we will find the optimal solution for your situation.
