Efterafviklingen

Efterafviklingen refers to the Danish process of winding down and closing down a business or organization in an orderly manner. The term combines the words *efter* (after) and *afvikling* (closure or winding down), indicating the actions taken once a company or institution has decided to cease operations. This process is governed by Danish law and involves several key steps to ensure compliance, protect stakeholders, and minimize legal or financial risks.

The process typically begins with formal notification to relevant authorities, such as the Danish Business Authority (*Erhvervsstyrelsen*), tax authorities, and employees. Owners or directors must file closure documents, settle outstanding taxes, and resolve any pending financial obligations. Employee rights, including severance pay and notice periods, must be addressed according to Danish labor laws. Pensions, insurance policies, and other benefits must also be properly managed to avoid disputes.

Assets are liquidated or transferred, while liabilities are settled. Creditors are notified, and any remaining funds are distributed according to legal priorities. If the business was registered for VAT, deregistration may be required. For companies, dissolution must be formally recorded in the Danish Commercial Register (*Erhvervsregisteret*), often involving a court-approved liquidation process if debts exist.

Small businesses or sole proprietorships may have a simpler closure process, but all steps must still adhere to Danish regulations. Failure to follow proper procedures can result in legal consequences, including fines or personal liability for directors. Consulting legal or accounting professionals is often recommended to ensure a smooth and compliant closure. The process can take several months, depending on the complexity of the business and its financial situation.