Details about how you can liquidate a company in Italy, helped by our local lawyers. More info at http://www.lawyersitaly.eu.

1. How to liquidate aHow to liquidate a
company in Italycompany in Italy
A presentation brought to you byA presentation brought to you by
BridgewestBridgewest

2. Methods for liquidating aMethods for liquidating a
company in Italycompany in Italy
There are two ways a company can beThere are two ways a company can be
liquidated in Italy, according to the Civil Code:liquidated in Italy, according to the Civil Code:
- voluntary (from the will of the shareholders);- voluntary (from the will of the shareholders);
- compulsory (from the will of a third party with- compulsory (from the will of a third party with
interests in the company).interests in the company).

3. Why a company can beWhy a company can be
liquidated voluntary (1)liquidated voluntary (1)
There are many reasons an Italian companyThere are many reasons an Italian company may bemay be
forced to request the voluntary liquidation:forced to request the voluntary liquidation:
- the expiry date of availability stated in the articles of- the expiry date of availability stated in the articles of
association,association,
- achieving the desired objectives,- achieving the desired objectives,

4. Why a company can beWhy a company can be
liquidated voluntary (2)liquidated voluntary (2)
- the decrease of the required minimal capital,- the decrease of the required minimal capital,
- a general meeting decision,- a general meeting decision,
- the company’s inactivity for a long period of- the company’s inactivity for a long period of
time.time.

5. Compulsory liquidationCompulsory liquidation
The compulsory liquidation is a decision takenThe compulsory liquidation is a decision taken
by the court and it’s usually based on a petitionby the court and it’s usually based on a petition
signed by the creditors or requested by othersigned by the creditors or requested by other
third parties with interests in that legal entity.third parties with interests in that legal entity.
If an Italian company cannot pay its debts atIf an Italian company cannot pay its debts at
liquidation, then it is declared in insolvency.liquidation, then it is declared in insolvency.

6. InsolvencyInsolvency
There are three methods to apply theThere are three methods to apply the
insolvency measures:insolvency measures:
- liquidation- liquidation bankruptcy,bankruptcy,
- compulsory administrative bankruptcy,- compulsory administrative bankruptcy,
- extraordinary administration.- extraordinary administration.

7. Steps for companySteps for company
liquidation in Italy (1)liquidation in Italy (1)
The Bankruptcy Court can initiate the process ofThe Bankruptcy Court can initiate the process of
liquidation bankruptcy at the request of the debtor, theliquidation bankruptcy at the request of the debtor, the
creditor, public prosecutor or the court.creditor, public prosecutor or the court.
The first step of the process is deciding if the companyThe first step of the process is deciding if the company
is indeed insolvent in the presence of the debtor and theis indeed insolvent in the presence of the debtor and the
creditor. The company is then registered in the Publiccreditor. The company is then registered in the Public
Bankrupt Register.Bankrupt Register.

8. Steps for companySteps for company
liquidation in Italy (2)liquidation in Italy (2)
If the entity is insolvent, the judge will appoint theIf the entity is insolvent, the judge will appoint the
delegated judge and the bankruptcy trustee and willdelegated judge and the bankruptcy trustee and will
elect a bankrupt entrepreneur who will file the balanceelect a bankrupt entrepreneur who will file the balance
sheet and the accounting books of the company.sheet and the accounting books of the company.
The bankrupt entrepreneur is deciding the modality ofThe bankrupt entrepreneur is deciding the modality of
depositing the claims and the court will decide the datadepositing the claims and the court will decide the data
for the first hearing of the claims. for the first hearing of the claims.

9. Steps for companySteps for company
liquidation in Italy (3)liquidation in Italy (3)
After covering in full the claims, the liquidationAfter covering in full the claims, the liquidation
bankruptcy process may be closed. (thisbankruptcy process may be closed. (this
process is called bankruptcy creditorsprocess is called bankruptcy creditors
settlement).settlement).
The company is erased from the PublicThe company is erased from the Public
Bankrupt Register and the procedure bodiesBankrupt Register and the procedure bodies
cease their activities.cease their activities.

10. How long does it take aHow long does it take a
liquidation in Italy?liquidation in Italy?
The Italian companies can be liquidated inThe Italian companies can be liquidated in
a term which can take from six months toa term which can take from six months to
several years, according to the complexityseveral years, according to the complexity
of the procedures.of the procedures.

11. How to contact our lawyersHow to contact our lawyers
in Italyin Italy
Phone: (+44)203.287.0408Phone: (+44)203.287.0408
Address: Via dell’Annunciata, 23/4, 20121 MilanAddress: Via dell’Annunciata, 23/4, 20121 Milan
E-mail: office@lawyersitaly.eu.E-mail: office@lawyersitaly.eu.