When they decide to open a company in Poland
investors will not consider that day when they may have to end their operations. Oftentimes the decision must be made because of poor economic performance, which may be related to the direct activities of the company or to the general economic situation in the country. Deciding when to close a business in Poland
is not an investor’s easiest decision and it can depend on a number of factors.
When to consider closing a business
: failure to produce enough profit is a common cause of business failure
. Company owners need to consider the expenses associated with the production and hiring employees in Poland
as well as many other issues. Profitability is the aim of any business and the inability to make a profit is a clear indicator that it is best to close the business.
The market conditions have changed: sometimes your products or services may no longer be needed on the market you were operating on. When this happens you can consider shutting down the business altogether or adapting to the new market trends and requirements, if possible. The latter can be a difficult step and you should carefully calculate your options.
Lack of resources
: some types of companies
are more dependent on certain resources. When these become unavailable, the business is at risk. Examples include those companies that engage in agriculture. When they open a Polish company
investors may perform a prior investigation to determine how the available resources will vary.
Steps for closing a Polish company
After you decide it’s time to close your Polish business
you should consider that this must happen according to a specific timeline. Company liquidation
is a multiple step process. First, you need to pay any outstanding debts and/or sell the company assets in order to be able to satisfy the claims of the debtors (according to their importance).
In Poland, a company liquidator must be appointed to handle the procedure. during this time no dividend payments are possible, however, the company will continue to comply with the existing requirements for taxation in Poland and account maintenance.
Our Polish company formation experts
can give you more information about the company liquidation procedure. You can contact us
for more details.