You balance the sheets, close down the company and it remains in some "in liquidation" state for another year to make sure that the sheets are, in fact, balance

You balance the sheets, close down the company and it remains in some "in liquidation" state for another year to make sure that the sheets are, in fact, balanced. Makes the company more trustworthy for potential partners since they won't face closed doors from one day to the next, but otherwise makes little difference: a company in liquidation is really low maintenance if the paperwork is in order.