{"id":66,"date":"2023-05-29T07:20:20","date_gmt":"2023-05-29T07:20:20","guid":{"rendered":"https:\/\/lawyersgreece.eu\/?p=66"},"modified":"2023-10-31T10:36:46","modified_gmt":"2023-10-31T10:36:46","slug":"company-liquidation-in-greece","status":"publish","type":"post","link":"https:\/\/lawyersgreece.eu\/company-liquidation-in-greece\/","title":{"rendered":"Company Liquidation in Greece"},"content":{"rendered":"\n<p>According to the\u00a0<strong>Greek Civil Code\u00a0<\/strong>regulations, the law on the modernization and development and the law on<strong>\u00a0taxation of a Greek<\/strong>\u00a0<strong>company<\/strong>\u00a0has to follow two steps before<strong>\u00a0ceasing to exist<\/strong>: the\u00a0<strong>dissolution and the liquidation<\/strong>\u00a0(<strong>ekkatharisi<\/strong>).\u00a0<a href=\"https:\/\/www.lawyersgreece.eu\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Our lawyers in Greece<\/strong><\/a> can help you\u00a0<strong>close a company<\/strong>.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/lawyersgreece.eu\/company-liquidation-in-greece\/#what-are-the-steps-for-company-liquidation-in-greece\" title=\"What are the steps for company liquidation in Greece?\">What are the steps for company liquidation in Greece?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/lawyersgreece.eu\/company-liquidation-in-greece\/#what-are-the-latest-regulations-for-company-liquidation-in-greece\" title=\"What are the latest regulations for company liquidation in Greece?\">What are the latest regulations for company liquidation in Greece?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/lawyersgreece.eu\/company-liquidation-in-greece\/#what-is-%e2%80%98inability-to-pay%e2%80%9d-in-greece\" title=\"What is \u2018inability to pay\u201d in Greece?\">What is \u2018inability to pay\u201d in Greece?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/lawyersgreece.eu\/company-liquidation-in-greece\/#what-is-the-data-on-company-liquidation-in-greece\" title=\"What is the data on company liquidation in Greece?\">What is the data on company liquidation in Greece?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/lawyersgreece.eu\/company-liquidation-in-greece\/#how-long-does-it-take-to-liquidate-a-company-in-greece\" title=\"How long does it take to liquidate a company in Greece?\">How long does it take to liquidate a company in Greece?<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"what-are-the-steps-for-company-liquidation-in-greece\"><\/span><strong>What are the steps for company liquidation in Greece?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The&nbsp;<strong>dissolution can be initiated<\/strong>&nbsp;if the members of the company take this decision, if the term stated in the Articles of Association has expired, if the company has accomplished its purposes, if a general partner is legally incapable to carry on with the business, is declared bankrupt, dies, or simply leaves the partnership. The<strong>&nbsp;dissolution<\/strong>&nbsp;is followed by the<strong>&nbsp;liquidation<\/strong>, with the final purpose of&nbsp;<strong>canceling the company<\/strong>&nbsp;from the commercial register.&nbsp;<\/p>\n\n\n\n<p>The<strong>&nbsp;person in charge with the<\/strong>&nbsp;<strong>liquidation is called liquidator<\/strong>&nbsp;and it\u2019s appointed either by the general meeting of the entity or by the Court. His powers are the same as the ones of the former management but they can be used only in the&nbsp;<strong>interest of the liquidation<\/strong>. Usually the former manager or director is also&nbsp;<strong>appointed liquidator<\/strong>.<\/p>\n\n\n\n<p>The main aspect for&nbsp;<strong>starting the liquidation process<\/strong>&nbsp;is opening new books and closing the ones used by the company up until that point. During the&nbsp;<strong>liquidation process<\/strong>, the company\u2019s members have to receive the balance sheet, that will be presented and analyzed during the general meeting.&nbsp;<\/p>\n\n\n\n<p>If the document is approved, it must be published and the creditors are notified regarding the process and the modality of submitting their claims.\u00a0You can<strong>\u00a0<a href=\"https:\/\/www.lawyersgreece.eu\/about-us\" target=\"_blank\" rel=\"noreferrer noopener\">rely on our law firm in Greece<\/a><\/strong>, where you can receive the necessary support throughout the entire<strong>\u00a0liquidation procedure of the company<\/strong>.\u00a0They can also help you if you want to start a new company. In this case you don&#8217;t have to travel to Greece, if you are foreign investor, you can give us a power of attorney and we will act on your behalf and take care of the company formation process, such as in other countries, like <a href=\"https:\/\/companyformationportugal.com\/\">Portugal, where you can open a company<\/a> through a local lawyer. <\/p>\n\n\n\n<p>The claims from the creditors have priority in front of the shareholders and if it cannot be covered in full, the entity\u2019s assets can be sold in public auctions. The public auctions cannot be organized sooner than four months since the<strong>&nbsp;liquidation was initiated.&nbsp;<\/strong>When all the creditors\u2019 claims are satisfied in full, a new balance sheet must be elaborated and a report regard the whole process must be presented in front of the company\u2019s members.<\/p>\n\n\n\n<p>The remaining assets are then distributed to the shareholders in the order of their contribution to the capital. After this step the last balance sheet is elaborated and the general meeting is convened for the last time. The balance sheet is published if approved and the<strong>&nbsp;liquidator&nbsp;<\/strong>is then dismissed. The&nbsp;<strong>company is deleted&nbsp;<\/strong>from the registers and no other commercial activities can be performed by it.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"what-are-the-latest-regulations-for-company-liquidation-in-greece\"><\/span><strong>What are the latest regulations for company liquidation in Greece?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you are considering<strong>&nbsp;liquidating a company in Greece<\/strong>, regardless of the reason, you can easily&nbsp;<a href=\"https:\/\/www.lawyersgreece.eu\/power-of-attorney-greece\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>address to our Greek law firm<\/strong><\/a>for legal counselling. Please mind that if you were familiarized with the<strong>&nbsp;law regulating insolvency and liquidation in Greece<\/strong>, the law has recently been modified, so it would be advisable to address to a team of specialists.&nbsp;<\/p>\n\n\n\n<p>Starting with 1st of January 2021,&nbsp;<strong>Greece<\/strong>&nbsp;has adopted the&nbsp;<strong>Debt Settlement and Facilitation of Second Change Law (the Law 4738\/2020)<\/strong>. The new law provides new provisions and measures when dealing with both&nbsp;<strong>personal and corporate insolvencies<\/strong>. The legislation also transposes into the national law and practices the&nbsp;<strong>Directive 1023\/2019<\/strong>.&nbsp;<\/p>\n\n\n\n<p>Under this new law, the local authorities have as a main purpose the reduction of the time and procedures involved when dealing with&nbsp;<strong>insolvency, restructuring and company liquidation<\/strong>. Through the new regulations,<strong>&nbsp;Greek authorities&nbsp;<\/strong>have introduced a modern, electronic system, which is set to facilitate the procedure, by providing up-to-date information to the Court authorities on the situation of an entity.&nbsp;<\/p>\n\n\n\n<p>The same system also includes the publication of the court decision regarding the&nbsp;<strong>insolvency of a company<\/strong>. With regards to auctions, a procedure through which the assets of a company or an individual are sold in order to obtain capital for the respective debts, the new law introduced new rules as well.&nbsp;<\/p>\n\n\n\n<p>Thus, starting with 2021, the auctions are to be held online on a platform designed especially for this purpose, so that it can increase the transparency of the procedure, given that auctions related to<strong>&nbsp;company liquidation and insolvency<\/strong>&nbsp;have to be held publicly.&nbsp;<\/p>\n\n\n\n<p>It is expected that the new system will have as a main benefit the&nbsp;<strong>speeding up of the liquidation procedure<\/strong>, as the assets will be sold much faster. If you want to know more details on the new law, please refer to<strong>&nbsp;our team of Greek lawyers<\/strong>, who can advise on the latest modifications of the law.&nbsp;<\/p>\n\n\n\n<p>If you need&nbsp;<a href=\"https:\/\/www.companyformationnetherlands.com\/\">company liquidation services in other countries, such as Netherlands<\/a>, we can put you in touch with our local partners who offer business consulting and immigration services.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"what-is-%e2%80%98inability-to-pay%e2%80%9d-in-greece\"><\/span><strong>What is \u2018inability to pay\u201d in Greece?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A company or another type of entity<strong>&nbsp;must declare insolvency<\/strong>&nbsp;and start the procedure of&nbsp;<strong>company liquidation in Greece&nbsp;<\/strong>only in certain scenarios. One of them refers to&nbsp;<strong>not being solvent<\/strong>, which means that the respective entity does not have a cash flow in order to secure the current financial obligations it has.&nbsp;<\/p>\n\n\n\n<p>The legislation defines what&nbsp;<strong>\u201cinability to pay\u201d<\/strong>&nbsp;is and if a party is in this particular situation, this means that the<strong>&nbsp;insolvency procedure can start<\/strong>. According to the<strong>&nbsp;Greek law<\/strong>, the<strong>&nbsp;\u201cinability to pay\u201d<\/strong>&nbsp;refers to the<strong>&nbsp;lack of cash flow that a debtor has<\/strong>, which makes the respective entity unable to pay the&nbsp;<a href=\"https:\/\/www.lawyersgreece.eu\/greece-double-taxation-avoidance-agreements\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>tax<\/strong><\/a>&nbsp;obligations to the<strong>&nbsp;Greek state or the Greek social security<\/strong>, as well as to financial institutions, in the case in which the entity has a debt (through a credit) with such institutions.&nbsp;<\/p>\n\n\n\n<p>The term is to be applied in the case in which the person is liable to pay at least EUR 30,000 for a period of minimum six months. You can receive more details on this regulation from<strong>&nbsp;our Greek law firm<\/strong>. If you are in this situation, please do not hesitate to address to a&nbsp;<strong>team of competent lawyers&nbsp;<\/strong>who have the necessary legal expertise in this legal field.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"what-is-the-data-on-company-liquidation-in-greece\"><\/span><strong>What is the data on company liquidation in Greece?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The information concerning the<strong>&nbsp;companies that are liquidated in Greece<\/strong>, or those that have entered the&nbsp;<strong>bankruptcy procedure<\/strong>&nbsp;is gathered by the<strong>&nbsp;<a href=\"https:\/\/www.statistics.gr\/en\/home\" target=\"_blank\" rel=\"noreferrer noopener\">Hellenic Statistical Authority<\/a><\/strong>. In the list below, you can find information on how the&nbsp;<strong>number of bankruptcies<\/strong>&nbsp;has evolved over the years for<strong>&nbsp;Greek commercial companie<\/strong>s:&nbsp;<\/p>\n\n\n\n<ul>\n<li>in 2010, there were&nbsp;<strong>380 registered bankruptcies<\/strong>, the largest number, of 178, registered in the case of business partnerships;<\/li>\n\n\n\n<li>in 2011, it was registered the<strong>&nbsp;largest number of bankruptcies<\/strong>, of 474, for the entire measured period (2010 \u2013 2019);<\/li>\n\n\n\n<li>since 2015, the&nbsp;<strong>number of bankruptcies gradually decreased&nbsp;<\/strong>\u2013 206 in 2015, 111 in 2016 and 114 in 2017;&nbsp;<\/li>\n\n\n\n<li>in 2018, there were<strong>&nbsp;less than 100 bankruptcies<\/strong>, of only 82, with almost an equal distribution between sole traders (30) and business partnership (32);<\/li>\n\n\n\n<li>2019 registered the<strong>&nbsp;lowest number of bankruptcies<\/strong>, of only 63.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"how-long-does-it-take-to-liquidate-a-company-in-greece\"><\/span><strong>How long does it take to liquidate a company in Greece?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The&nbsp;<strong>process of company liquidation<\/strong>&nbsp;can take several years if many claims are involved in it but after five years,&nbsp;<strong>measures of accelerated liquidation are taken<\/strong>. If you need help for&nbsp;<strong>closing a company<\/strong>, please&nbsp;<a href=\"https:\/\/www.lawyersgreece.eu\/contact#jmp\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>contact our team of lawyers in Greece.<\/strong><\/a><\/p>\n\n\n\n<p>Still, given that the law has recently been modified, the procedure can take a shorter amount of time, but this can vary based on numerous factors. If you have to&nbsp;<strong>start the liquidation procedure<\/strong>, do not hesitate to&nbsp;<strong>contact a team of Greek lawyers<\/strong>&nbsp;with an in-depth experience in similar cases. Our team can help you find the most suitable solution for your situation.<\/p>\n\n\n\n<p>You can<strong>&nbsp;contact our team of lawyers<\/strong>&nbsp;for other legal issues that can be of your interest. For example, if you want to<strong>&nbsp;<a href=\"https:\/\/www.lawyersgreece.eu\/property-lawyers-greece\" target=\"_blank\" rel=\"noreferrer noopener\">buy a property in Greece<\/a><\/strong>&nbsp;for commercial purposes you can<strong>&nbsp;rely on our attorneys<\/strong>, who are specialized in this area.&nbsp;<\/p>\n\n\n\n<p>Our team can represent foreign clients in the procedure of purchasing a property for residential purposes as well (we offer specialized assistance to EU and non-EU citizens).&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>According to the\u00a0Greek Civil Code\u00a0regulations, the law on the modernization and development and the law on\u00a0taxation of a Greek\u00a0company\u00a0has to follow two steps before\u00a0ceasing to exist: the\u00a0dissolution and the liquidation\u00a0(ekkatharisi).\u00a0Our lawyers in Greece can help you\u00a0close a company. What are the steps for company liquidation in Greece? The&nbsp;dissolution can be initiated&nbsp;if the members of the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":67,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[25,24,21,26,22,23,13],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Company Liquidation in Greece - Civil and Commercial Assistance<\/title>\n<meta name=\"description\" content=\"This article presents the procedure on company liquidation in Greece. 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