Dear Partners and Clients, we have been quite often requested to help with liquidation of offshore companies. We deliver this service in full and by the end of this; you will receive the official document from the Registry to verify the dissolution and liquidation of the company. In this article we will tell a little bit more about liquidation.
Liquidation of offshore companies
At some time, the owner of the company may want or will need to close an offshore company. Like any other procedure, liquidation of an offshore company requires adequate actions, compliance with all legal requirements in different jurisdictions. Later in the article we will tell you how to wind up the company, how to avoid mistakes and unpleasant consequences.
Exclusion of the company from the Registry and its consequences
Many owners of offshore companies who seek for less costly scenario choose writing the company off the Registry for non-payment of annual mandatory payments. Considering that all legal obligations shall be withdrawn from the company, they merely leave it on its own hoping it will disappear.
However, the company with its directors and shareholders continue to beer liability on debts, but they cannot dispose of its assets, participate in operations and challenge the company’s rights. The company remains unprotected to creditors, who can file lawsuits and conduct them before the court ruling.
It should be noted that in some countries after 6 months since the date of writing the company off the Registry, the Government may use its right to confiscate all assets of the company without the right of return even through the court. It should also be considered that directors and shareholders will no longer be able to register a new company as the liquidated company.
Formal liquidation of offshore companies
Our company offers the only correct solution for this procedure. As a result of our actions, the company will get a certificate of liquidation of the company and the company will formally cease its activity.
When all obligations of the company are fulfilled and there are no debts that the company is unable to repay, it is the good time to start the company liquidation.
First of all, owners should decide to liquidate the company. The Board of Directors and the meeting of shareholders should appoint a liquidator and approve the plan of dissolution, make a statement on the company solvency. Then documents are filed with the Registrar to proceed the company liquidation; after that, within 30 days, it should pay a duty and to make an announcement on the start of liquidation procedure. It is followed by the liquidation, removal of the company from the Registry and receipt of the certificate of the company liquidation and formal publication in press.
As you can see, the procedure is not complicated, but requires certain time, some funds and consequence of all procedures. But make sure that after all procedures, your company shall be deemed fulfilled all its obligations and claims on the part of creditors will not be accepted.
The Private Financial Services employs lawyers with the area of expertise in liquidation, with long years of experience in these procedures.
If you intend to liquidate your offshore company or get consulted, feel free to contact our specialists.