Upon dissolution, the company’s original corporate purpose comes to an end. The company initially continues to exist, however, while entering the process of termination. This is often followed by liquidation.
Dissolution marks the beginning of the termination of a company. It does not, however, mean that the company is immediately deleted from the register. Instead, a legally regulated process begins during which the company is wound up. Depending on the individual case, dissolution is followed by liquidation before the company is ultimately removed from the Commercial Register.
Information that a company is in dissolution can be relevant to many business decisions.
It supports, among other things:
- credit assessments,
- business partner assessments,
- contractual decisions,
- compliance reviews, and
- due diligence processes.
Dissolution should always be considered in conjunction with the company’s further proceedings status.
Dissolution in the FinAPU Firmenbuch
The FinAPU Firmenbuch displays dissolutions separately from bankruptcies and liquidations. This makes it easier to identify and classify different company situations.
Together with additional information such as company status, corporate officer roles or annual financial statements, it provides a comprehensive overview.
