How to Properly Close a Company in Poland: Insights from a Successful Liquidation

Liquidating a Company in Poland

The process to close a company in Poland requires strict adherence to legal and accounting procedures. Our first experience in company liquidation confirmed that maintaining accurate accounting throughout the business’s operation is a key factor in successfully completing this process. Here, we share the details of our case.

The Liquidation Process

Our client, whom we had worked with since the company’s inception, decided to close their business. Thanks to transparent and meticulous accounting practices during the company’s operations, we were able to proceed with the liquidation process without major obstacles.

The first step involved preparing an application to the KRS (National Court Register) through legal advisors. This application requested the removal of board members and introduced the liquidator’s details. Simultaneously, a liquidation notice was published in the Court and Commercial Gazette (MSiG), which required a court fee. The publication initiated a six-month period to complete the liquidation process.

Our Team’s Actions

After officially initiating the liquidation procedure, we undertook the following tasks:

1. Conducted a full inventory of receivables and payables.
2. Reconciled bank account balances.
3. Prepared final tax filings (CIT-8, VAT-7).
4. Communicated with the client regarding the liquidation process.
5. Prepared financial statements and the liquidation balance sheet.

Each of these steps ensured clarity and consistency throughout the liquidation.

Technical Aspects of Liquidation

The liquidation process began mid-year, requiring special attention to financial reporting. According to the Accounting Act, accounting books must be closed on the day before the liquidation begins and reopened on its starting date.

For instance, if the liquidation began on March 22, 2024:

• the accounting books must be closed as of March 21, 2024,
• reopened as of March 22, 2024,
• a liquidation balance sheet must be prepared for March 22, 2024,
• financial statements must be issued for the period January 1 to March 21, 2024.

Accounting software is not always adapted for such scenarios, requiring additional effort from our team. Nevertheless, all documents were correctly prepared and submitted to the KRS within 15 days of opening the liquidation process.

Completion of Liquidation

During the liquidation, the company fulfilled its obligations, closed bank accounts, and continued operating under the same name with the suffix “in liquidation,” as stated in the KRS entry.

The final steps included:

• submitting an update form (NIP-8) for tax registration,
• deregistering the company from the VAT payer list.

After fulfilling all obligations, we completed the liquidation process by submitting an application to remove the company from the KRS, filing the final CIT-8 tax declaration, and preparing the final liquidation report.

Conclusions

The company’s liquidation was completed within the legally mandated six months. Responsible accounting from the beginning helped avoid delays and corrections. All obligations to creditors were met, and the client was satisfied with the process. This was our first, but successful, experience in closing a company in Poland.