Voluntarily striking off or closing a company in Cyprus, for whatever reason, can be daunting if you are unaware of the potential steps or pitfalls involved. Without specialist knowledge you may fall at the first hurdle and it is better to close or wind up the company cleanly without leaving a stack of administrative liabilities behind you. Our staff at Close a European Company can provide a full package of bespoke services according to your individual/corporate requirement as follows:
We offer the following services for dissolving/winding up a company:
- Accountancy advice
- Taxation services
- Legal advice
- Liquidation and insolvency services
- Personal Liability Advice
- Advisory Services
OPTIONS FOR DISSOLVING/WINDING UP A CYPRUS COMPANY?
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Voluntary Strike Off For Companies With No Assets Or Liabilities
A Cyprus company may be voluntarily struck off the register provided that the company has no assets or liabilities, in other words, the company is dormant or the balance sheet is zero. This is the easiest and quickest way to close a Cyprus company.
In order to ensure that the Cyprus company is closed in the proper manner and in the quickest possible timeframe you will need to follow the steps below:
- Companies can apply under section 327 of Cyprus Companies Law Chapter 113
- Draw up a shareholders resolution for the termination of the operations and closing down the company
- Preparation and filing with the authorities of final financial statements up to end of December of the year of closure showing that the company terminated its operations and has no assets or liabilities
- Application by the directors of the company to the Registrar of Companies for the dissolution of the company under section 327 of the Companies Law Chapter 113. The registrar of companies will publish the application for the dissolution in the official Gazette and if no objections the company will be dissolved within six months from the date of the application.
- Send letter to the Irish revenue to request a letter of no objection
- Insert an advertisement in an Irish national daily newspaper
- Prepare and file form H15 with the Irish companies registration office
ADVANTAGES OF VOLUNTARY DISSOLUTION
- It is a quick and clean removal of a dormant or zero liability company from the Companies House Register.
- Dissolution is less costly than liquidation in terms of fees and expenses.
DISADVANTAGES OF VOLUNTARY DISSOLUTION
- If the company is not dissolved in the proper manner then this could take time and money, please contact us for assistance and fees for winding up your company in Cyprus.
Voluntary Strike Off For Companies With Members And Shareholders
The procedure for members’ voluntary liquidation of the company is as follows:
- Resolution by the shareholders to dissolve the company
- Application to the court to wind up the company stating the assets and liabilities of the company. The shareholders resolution will be attached
- The court will issue a winding up order to the Official Receiver to liquidate the company
- The directors are required to sign a “statement of affairs” which will be submitted to the Official Receiver and will show the assets and liabilities of the company at that date, if any.
- The liquidation will be announced in the Cyprus government gazette and a Creditors meeting will be convened.
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This is not a choice. The company is put under compulsory liquidation where the company is unable to pay its debts. This is an expensive course of action and clear advice needs to be taken. This usually involves taking the debtor to the high court.
What happens in a compulsory liquidation?
- The high court files an insolvency petition to wind up the company if there are creditors.
- Liquidation will be granted if the court finds that it is just and equitable.
- The business will be allowed to continue in order to enhance the proceeds of the liquidation of the company.
- Receivership is the most commonly used procedure
For both options it is important to take care to protect the assets of the business, to conform to the liquidator’s wishes and to act responsibly. Please contact us for further information and advice as to how to proceed. We can assist you with either Voluntary Liquidations or Insolvency services generally to ensure that you are following the right path – Please call: +44 (0)203 114 5113
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