Dissolution is the formal ending of a company's legal existence. It can be voluntary — the owners file to close the entity — or administrative, when a registry dissolves an entity for failing to file reports or pay fees.
A dissolved entity generally cannot conduct new business, though it may continue to exist for the limited purpose of winding up its affairs.
Administrative dissolution can sometimes be reversed by reinstatement if the entity cures the missed filings within an allowed window.
Related terms
- Entity status — Entity status
- Good standing — Good standing
- Annual report — Annual report