Dissolution

The method of dissolution can always be agreed upon in the partnership agreement. It’s possible to agree on the method of dissolution separately from the partnership agreement if not agreed upon therein. In case the method of dissolution is not agreed upon in the partnership agreement or separately from it, the partnership shall be dissolved according to chapter 5 of the Partnerships Act (389/1988).

Both general partnerships and limited partnerships can always be dissolved without a separate liquidation procedure by the partners’ unanimous decision. The dissolution decision must be submitted to the Trade Register with a free of charge dissolution announcement. In order to register the notice in the Trade Register, all business mortgages must be extinct or transferred to another firm.

Dissolution can also occur as a result of liquidation proceedings and the bankruptcy possibly following it. The company is also considered dissolved, if the number of the partner has diminished to one and new partners don’t start within a year. After the partnership assets have been distributed or the partnership shall otherwise be deemed dissolved, a partner or a court-appointed liquidator shall without delay submit a notice of the dissolution to the Trade Register.