Stopping a BV cannot be done just like that. Closing a BV quickly is also no longer possible since the introduction of the transparency turboliquidation law. The BV must meet certain strict conditions before you can dissolve it.
How a BV can be closed down actually always depends on the balance sheet. The balance sheet shows an overview of possessions (assets) and debts (liabilities). There are four scenarios to consider here:
- The BV has more debts than assets
- The BV has more assets than debts
- The BV has no debts but has assets
- The BV has no debts and no assets
For each scenario, we explain whether and how the BV can be dissolved. There is one scenario in which dissolution is not possible. Surprisingly, there is only one scenario in which a BV can be dissolved via flash liquidation (also called turboliquidation).
The BV has more debts than assets
When a limited liability company has more debts than assets, the only way out in most cases is bankruptcy. After all, the assets can no longer cover the debts.
However, filing for bankruptcy is not always necessary. If an agreement can be reached with the creditors, it is possible to realize a liquidation outside bankruptcy. In this process, a liquidation is carried out with the consent of the creditors and bankruptcy is avoided. In many cases, a payment arrangement is made that everyone is happy with. With a payment arrangement, the creditor gets his money and the entrepreneur does not have to file for bankruptcy. A win-win situation for both parties.
But, a flash liquidation is not possible here.
The BV has more assets than debts
If a company has more assets than debts, then liquidation is possible. There is money (or something another asset) left after paying the debts. However, this cannot be done with a flash liquidation. In such a situation, a regular liquidation is performed.
A regular liquidation takes about 3 months to complete. So this cannot be called a quick way of dissolving a BV.
A flash liquidation is not possible here.
The BV has no debts, but it has assets
In the situation where a BV has no debts but has assets, you can dissolve the BV relatively quickly. However, a flash liquidation cannot be done immediately.
What needs to happen first is for the assets to be taken off the balance sheet. This can be done in several ways.
If there are still assets on the balance sheet in the form of (for example) computers, desks, pens, paper, etc. In short, smaller items, then you can write these off. An accountant will know if this can be done and how to do it. When these items are written off and the balance sheet on the asset side is otherwise empty, only then can you perform a flash liquidation.
If there is more on the balance sheet, say several thousand euros, then you will have to distribute this first. This is done in the form of dividends. You will have to pay taxes on this amount. Once the money has been distributed and taxes have been properly paid, only then can you dissolve the BV with a flash liquidation.
The BV has no debts and no assets
The ideal situation to quickly dissolve a BV is when there are no possessions (assets) and no debts (liabilities). The BV is empty and no longer has any activities. This is usually entirely at the beginning of a BV’s life cycle (if it has not been used). Or at the end of the life cycle, when all assets have been monetized and all debts have been paid off. A turboliquidation is possible in this case.
However, you must keep in mind that you must meet the conditions of the law transparency turboliquidation. Among other things, you have to prepare all financial statements and make a statement as to why the BV no longer has any income. Once that is done, there is nothing stopping you from liquidating the BV.
In short, a flash liquidation is possible here.
Wind up your BV quickly?
Do you have questions after reading the above scenarios and you are not sure in which scenario your BV falls? Then contact us without obligation. Since 2015, we have been the specialist in dissolving BVs.