Closure of ApS

A limited liability company (ApS) can be closed down in various ways, depending on its financial situation and legal liabilities. If the company is solvent, one can opt for liquidation with declaration of payments or voluntary liquidation. If liquidation with declaration of payment is chosen, the capital owners report that the company has no financial arrears. In contrast, in the case of voluntary liquidation, the company may have debts but chooses to pay them by appointing a liquidator who will be responsible for selling assets and paying off liabilities.

Closure of ApS

There are also solutions for companies in the event of insolvency, which include liquidation by bankruptcy and compulsory liquidation. Liquidation by bankruptcy occurs when a company has debts that it is unable to pay and a bankruptcy petition has to be filed. In such a case, the company’s property is used and an appointed curator takes care of paying the debts and liquidating the company. Compulsory liquidation, on the other hand, occurs when a company fails to comply with company law. In such a case, the supervisory authorities, for example Erhvervsstyrelsen, may decide to dissolve the company.