N) Closing a Company in Spain

Choosing the future of a business is a weighty decision. Whether to maintain it in a dormant state or to dissolve it entirely presents entrepreneurs with complex considerations. In this guide, we explore the nuances of leaving a business inactive versus opting for liquidation, delving into the implications and challenges of each choice.

Introduction

Deciding whether to leave a company inactive or to liquidate it poses a common dilemma for many entrepreneurs. The option to keep it inactive, also known as “dormant,” is often considered to preserve the possibility of reactivating the activity in the future or simply to avoid the expenses and the feeling of failure associated with the definitive dissolution of the company. However, this choice entails responsibilities and obligations that should not be overlooked. In this guide, we will explore the procedures for leaving a company inactive, its tax and commercial implications, and whether this option is really worthwhile compared to liquidation.


What to Know

Leaving a company inactive is a simpler and less expensive alternative than liquidation. While the dissolution and liquidation of a company involve a series of procedures and significant expenses, simply leaving it inactive involves communicating the cessation of activity to the Tax Authority.

To declare a company inactive, it is necessary to approve it in a General Meeting and then communicate it to the Tax Authority through a modification in the census declaration. This process must be carried out within a month from the cessation of activity.

However, leaving a company inactive does not mean that responsibilities can be forgotten. Although the company is not operational, there are still tax, accounting, and commercial obligations that must be fulfilled.


How Accompany Can Help

At Accompany, we understand that managing an inactive company can be complex and overwhelming for many entrepreneurs. Our experienced team offers expert advice to guide entrepreneurs through the procedures for leaving a company inactive, ensuring compliance with all legal and tax obligations.

Additionally, we offer services to facilitate the accounting and administrative management of the inactive company, helping entrepreneurs to stay up to date with their obligations without having to worry about the details.

Whether you need assistance in leaving your company inactive or are considering the best option for your specific situation, Accompany is here to provide the support and guidance you need.

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The information contained herein is of a general nature, and subject to changes. Applicability to your specific situation should be determined through consultation with our tax or legal advisors.