Liquidation
Liquidation is the orderly winding-up of a business: assets are realised, debts paid, any remaining surplus distributed to the shareholders, and the company is then struck from the commercial register.
Definition
For corporations it follows fixed steps: dissolution resolution, registration with the addition «in liquidation», call to creditors, one-year waiting period, final accounts, deletion. The liquidation surplus is subject to withholding tax and taxable for the recipient.
For a sole proprietorship it is simpler and often more expensive in tax terms: transferring business assets into private assets triggers taxation of the hidden reserves. For cessations at retirement age there is a mitigating special rule.
Where to read it
What the software must be able to do
Think about data access afterwards: the ten-year retention period keeps running even once the company is deleted. With subscription models that means exporting the data in full before cancelling.
Checked Aug 2026
More terms under Legal form and register: AG (public limited company) Association Auditor Commercial register Cooperative General partnership GmbH (limited liability company) Signing authority (Prokura) Sole proprietorship UID number