According to statistics, tens of thousands of Czech entrepreneurs close their businesses every year, and a total of 659 bankruptcies were declared in 2024. Most entrepreneurs will agree that it is not easy to succeed in a highly competitive environment, and it is therefore not surprising that a significant percentage of entrepreneurs eventually close their businesses. Are you also facing problems in your business? We will advise you on how to proceed.
Liability for liabilities of self-employed persons and gambling data russia limited liability companies
Many entrepreneurs wonder whether they can lose their assets in the event of failure. Here it is necessary to distinguish between self-employed persons and limited liability companies. The most fundamental difference between these two forms of business lies in the type of liability .
Self-employed: Self-employed people are liable for their obligations with all their personal assets, so it can happen that their business puts sole proprietors in existential problems. You can prevent this risk by taking out professional liability insurance. However, it should be noted that it is quite expensive, especially with a high turnover.
Ltd.: If you have an Ltd., or limited liability company, you are liable for your obligations only up to the amount of your unpaid share capital.
How to terminate a business as a self-employed person?
In the case of sole proprietors, the procedure for terminating a business is relatively simple :There are several ways to dissolve a limited liability company . If everything you need to know about effective project evaluation you want to terminate your business voluntarily, the most common procedure is the so-called liquidation of the company . Insolvency is then a forced procedure for terminating your business. However, there are more ways to terminate the activities of a limited liability company.
Insolvency
Insolvency is a controlled process of settling the assets of a company that is insolvent or is in imminent danger of bankruptcy. The insolvency law considers bankruptcy to be a situation where a company has several creditors and financial obligations that are at least 30 days past due
Company liquidation process
While insolvency is a forced procedure for ending a business, liquidation thailand data of a company is a voluntary procedure for ending a business and may not only apply to a company in debt, but also to a healthy one . You can decide to liquidate, for example, if the limited liability company is unnecessary or the company is not carrying out any activity.
The first step is a decision to dissolve the company, after which the company enters into liquidation. Liquidation consists of settling the company’s relations.
