12 litres is about equal to 3 gallons? Your goldfish will quickly out grow your tank. It is recommended that you give about 10 gallons (about 38 litres) per goldfish because they produce a lot of waste.
Fish poop and rotting food produce ammonia (toxic to fish). Nitrifying bacteria in your filter and gravel convert this ammonia into nitrite (less toxic than ammonia but still toxic) then it gets converted into nitrate (only toxic in high ammounts). This nitrate is then removed from your aquarium by doing water changes (so the nitrate doesn't build up). This is the nitrogen cycle.
Cycling refers to the process in which you build up these colonies of nitrifying bacteria.
http://www.aquariumadvice.com/showquestion.php?faq=2&fldAuto=21 here's a more in depth article about the nitrogen cycle.
http://www.aquahobby.com/articles/e_fishless.php there's an article on fishless cycle
http://www.aquahobby.com/articles/e_ciclo.php here's another article on the nitrogen cycle
You can also use a product made by Marineland, Bio-spira, which instantly cycles your tank by adding the bacteria directly into your tank. This is the only product that actually "works". Products such as cycle and other things that claim to "speed up the process" don't work.
I've personally used Bio-spira and say that it works great. Although pricey,
IMO, its well worth it. I bought a 1oz pouch, enough for a 30g (I have a 20g), and added it to the tank and filter. A couple minutes after, I added all my fish and haven't seen an ammonia spike or nitrite spike.
HTH.
and good luck with your tank.