The Companies and Employment: What You Need to Know
Thousands of companies are closed down in Finland every year. For example, new business does not get off to a good start, the entrepreneur’s life situation changes, he moves to paid employment or there is no successor company.
It is also typical to change the company form,i.e. terminate the business name and establish a public limited company.In its simplest form, winding up a business can be crystallized by the fact that the company has honored all its commitments. Experts give eight practical tips on what to keep in mind. The career coach can help you deal with it in the best ways now.
Make enough time
The decision to stop is rarely made after a moment’s whim. Therefore, time is also needed to implement it.
The liquidation of a limited liability company by way of liquidation generally takes a minimum of five months.
You do not always understand how big the process of stopping is. When a public limited company is wound up, it easily takes six months, including processing times, says TapirMelts, head of the legal team at the Accounting Office.
The dissolution of a public limited company requires, among other things, announcements to the company’s creditors.
Terminating a business name and a partnership will be faster, but there are also things to consider.
Take care of your daily obligations
The day-to-day operation of the company and the obligations therein must be downgraded before the formal notice of termination is given. This means, for example, the termination of contracts.
It is also a good idea to inform customers and other business stakeholders about the termination in good time.
Pay off the company’s debts
The company’s debts must be settled and all its assets must be disposed of, for example, by selling goods and equipment. The property may also be transferred to the entrepreneur’s private property by making a private takeover. That too is taxable income.
Plan for taxation
Or can it be somehow spread over years so that taxes are not too big at once? For example, if at the turn of the year one more depreciation can be made before the property remains, it may be wise. In his opinion, it is also worthwhile to distribute any possible dividend from the limited liability company before the termination.
- Other tax surprises may include, for example, negative equity, which results in hidden tax liabilities. Thus, over the years, the company has raised more money than it has produced.
After business closure, it often turns out that it has not paid enough and therefore has poor accumulation.It is often wise to do tax planning for winding up, for example with your own accountant or other financial professional.