How does a turbo-liquidation procedure work?

By 7 September, 2018October 8th, 2018No Comments

The turbo-liquidation is a type of fast-track procedure designed to save time and bypass the winding-up part of the liquidation. It is only applicable, in cases where there aren’t any positive assets, nor liabilities, left in the Company. Because the balance sheet is empty, there are no assets to be made liquid, no fees to collect and no debts to be paid. For this reasons no liquidators have to be appointed. The management board must file the liquidation of the company with the trade register and the company’s books and records will remain stored with the custodian for a period of seven years. In short, the advantages of a turbo-liquidation are the time and money saved by forgoing several steps taken in the traditional procedure. It is however very important to stress the fact that absolutely no assets can be left on the balance sheet for this streamlined procedure to work. If this requirement is not met, the Company is viewed as never having been dissolved.

Services provided by KC Legal

  • Preparation and filing of the liquidation of the company with the trade registry;
  • Preparation of final financial statements;
  • All registrations with the Dutch trade registry;
  • Acting as custodian;
  • Preparing and filing the final corporate income tax returns;
  • Drafting shareholders resolution for the turbo liquidation procedure.