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Bankruptcy of a trading or limited partnership

Bankruptcy of a trading or limited partnership

If a business cannot pay its debts on time, it must go bankrupt. A receiver then takes care of the business's assets and uses them to pay off the business's debts.

Bankruptcy means a business is closed down by the liquidation of all assets to pay off debts. You, as the business's representative, are responsible for filing all the business's tax returns up to and including bankruptcy. 

Apply for bankruptcy at the District Court 

Anyone representing a trading or limited partnership may apply to the District Court for the company to be declared bankrupt. Apply to the District Court. It rules on bankruptcy and appoints a receiver. During the bankruptcy proceedings, the receiver is responsible for managing the company's assets and liabilities. It is also up to the receiver to decide whether to continue the activity or to sell the business's assets outright. 

Contact the District Court if you have questions about fees, waiting times or how to appeal. 

During bankruptcy: tax, income statements and tax returns 

Someone must submit income statements during the bankruptcy period. It is common for the receiver to take over this responsibility, but you must agree on this in such cases. Tax returns must be filed by the business's representative, not by the receiver. 

The company must pay tax on all its income even during the bankruptcy period. 

Taxes and fees during bankruptcy of a trading partnership

Accounting during bankruptcy 

If you represent a trading or limited partnership, you must keep accounts until the District Court has ruled on bankruptcy. The receiver keeps accounts for everything that happens after that. 

Accounting during bankruptcy of a trading partnership

The Companies Registration Office and the Tax Agency deregister the company 

Once the District Court has decided that the business has gone bankrupt, it sends a notification to the Companies Registration Office and the Swedish Tax Agency. After that, it is not possible to change certain details of the limited company at the Companies Registration Office, such as the name of the company. 

You are responsible for the company's debts 

If your trading or limited partnership goes bankrupt, all of those who represent the company become personally liable for its debts, even though the company itself has been dissolved. You share that responsibility equally among you. 

The business may continue to operate 

The receiver may decide to continue to operate the activity. The bankruptcy estate will then receive a special company registration number and will have to pay the business's taxes. The bankruptcy estate also becomes the employer. 

When the bankruptcy ends 

The receiver reports his work to the District Court, which concludes the bankruptcy. 

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