Steps to follow to close your business

Steps to follow to close your business

Your business is in financial decline and you are looking for a way to close it ? Generally, this decision is made as a result of operational problems encountered by the company. The procedure of closing the business requires certain imperative steps that must be carried out in a chronological and precise manner. Here are the different steps to follow to close your company.

Decide to dissolve the company

The legal form of your company conditions your decision to dissolve and the steps to follow. Indeed, when the resolution of closure is taken jointly with the partners, you must convene a general meeting in this sense. It is during this meeting that you will, by mutual agreement, decide on the future of the structure. According to the law majority prevails after the vote. If your company was founded after 2005, for example, you must obtain 2/3 of the votes to go to the next step.

On the other hand, if it is a SASU (simplified single shareholder company) you have the absolute right to choose whether or not to close your services.

In any case, you must draw up minutes of dissolution and appoint a liquidator. The designation is made according to the conditions of the liquidation of the company. This can be done by the partners or by a judge.

Issue a notice of dissolution of the company

The cessation of the professional activity of your company mark the end of life of your structure. It impacts several other people, whether they are partners or employees. To do this, you must inform the public of your decision. It is also a legal provision which you cannot escape.

It will therefore be necessary to send a notice of dissolution to a legal announcement newspaper. approach the one that covers the department in which your company’s head office is located.

Include in your announcement the first names, surnames and contact details of the professional in charge of the operations. Also indicate the correspondence address for the liquidation. When your announcement is ready for publication, you will receive a certificate of publication.

This will help you demonstrate that you are in compliance with the current recommendations.

Filing a Petition to Amend

The next step is to amend certain informationns in the trade and company register. Send the request to the Centre de Formalités des Entreprises (Business Formalities Centre), enclosing a file made up of :

  • of the documents and vouchers of the structure,
  • a completed, dated and signed M2 form,
  • a letter of request for modification.

Make sure that all these elements are gathered before sending it to the concerned organization in order to avoid a rejection that could penalize you. Then, a court clerk will issue you a new Kbis extract mentioning the liquidation of your structure.

Carry out the liquidation operations

Take care of the liquidation of your company in order to close it. To do this, promptly release the business in progress in order not to risk lawsuits for not respecting commitments towards third party partners. Failure to do so could thwart the dissolution process, especially if the partnership is not in good standing’it s’acts d’a SARL.

Then, sell all the assets that your structure owns and pays off all debts. In collaboration with your partners, carry out the liquidation point

Note that the person in charge of the operations is obliged to convene all the partners to inform them of the evolution of the shares. present the social accounts so that they can be accepted.

Carry out the division of the structure

The next step consists of share the company’s income. It is carried out after the closing of the liquidation. It is at this moment that you determine the dividend of each shareholder or partner.

The distribution is made according to the amount remaining after all operations.

Profit beyond the share capital

In this case, each partner receives his share according to his investment in the companyitial or unamortized share. This can also be done by taking into account the regulations of your company. If there is no statutory specification, the profits are returned on the basis of the rights in the capital.

The liquidation bonus

Here, each partner receives a portion of the remaining according to its contribution in the social capital. However, if all creditors are not reimbursed, no one gets their share. They must take possession of their due before the final closing of the company.

When the company belongs to you alone, you will recover the gains resulting from the liquidation.

Special cases

The possibilities listed above can be set aside when a partner claims a contribution in kind that he has made. Also, it can happen that the agreements taken collectively define the exact share of a partner. Finally, a member can ask for a dividend that is rightfully theirs.

Apply for deletion of the company from the RCS

Ask for the deregistration of your company of You will need to keep legal records to finalize the closure of your sign. This process is mandatory, as all structures are listed in the RCS (Register of Commerce and Companies). A company that no longer exists legally must deregister from this platform.

It is a process that consists in informing the public and private market that you are no longer a competitor.

In order to make the request for suppression, you must transmit the supporting documents, namely: a form M4 and the Final liquidation accounts. After the last verifications, the clerk of the commercial court confirms the dissolution. Then, it publishes a notice in the official bulletin of civil and commercial announcements.

Finally, it delivers you a Kbis extract of radiation.