Voluntary liquidation (likvidation)
Likvidation (voluntary liquidation) is the winding-up of a solvent company: the general meeting decides to dissolve, a liquidator winds down operations, all creditors are paid in full, and the remaining assets are distributed to the owners.
The figures behind the term
Source: companydata.dk, CVR and annual reports, updated 27 October 2026
Liquidation is the orderly way to close a company no longer needed. The precondition is solvency, if creditors cannot be paid in full, the winding-up must instead proceed as bankruptcy. During the process the company is styled 'in liquidation', and creditors are invited via Statstidende to file their claims.
Liquidation vs. other endings
Unlike bankruptcy and forced dissolution, a completed liquidation is a neutral, often positive, signal: the owners closed properly and paid everyone. Smaller debt-free companies can alternatively close via the simpler solvency declaration, where the owners personally guarantee all debt.
Frequently asked questions
What is the difference between liquidation and bankruptcy?
Liquidation is a voluntary, solvent wind-down in which all creditors are paid in full and the surplus is distributed to the owners. Bankruptcy is an insolvent wind-down run by the bankruptcy court.
How long does a liquidation take?
At least three months, because creditors must be given three months to file claims after publication in Statstidende. In practice it often takes six to twelve months.
Can a company with debt be liquidated?
Only if the debt can be paid in full. If it cannot, the liquidator must file for bankruptcy instead.
Related terms
Bankruptcy (konkurs)
Konkurs (bankruptcy) is the judicial winding-up of an insolvent company: the bankruptcy court issues a decree, a trustee takes over the estate, assets are sold, and proceeds are distributed to creditors by statutory priority.
Forced dissolution (tvangsopløsning)
Tvangsopløsning (forced dissolution) is when the Danish Business Authority asks the bankruptcy court to dissolve a company because it fails statutory requirements, most often a missing annual report, missing registered management, or missing auditor.
Equity (egenkapital)
Equity (egenkapital) is the difference between a company's assets and its liabilities, the owners' share of the company. It typically consists of share capital, retained earnings, and any reserves.