Company Liquidation - Law firm Finance Business Service: offshore registration, tax planning, legal services

Company liquidation is a formal process of ending a company’s existence by settling its liabilities, distributing remaining assets, and removing its registration. It is a crucial step for business owners looking to cease operations in compliance with legal and financial obligations. Understanding the differences between liquidation, dissolution, and strike-off is essential for selecting the right method.

Popular Jurisdictions for Company Liquidation

1. United Kingdom
– Types: Voluntary liquidation (Members’ Voluntary Liquidation and Creditors’ Voluntary Liquidation) or Compulsory liquidation.
– Timeline: 6–12 months for voluntary liquidation; longer for compulsory liquidation.

2. United States
– Types: Chapter 7 bankruptcy or voluntary dissolution.
– Timeline:3–6 months for dissolution; longer for bankruptcy proceedings.

3. Hong Kong
– Types: Deregistration, voluntary liquidation, or compulsory liquidation.
– Timeline:6–9 months for deregistration; longer for liquidation.

4. United Arab Emirates (UAE)
– Types: Liquidation in free zones or mainland liquidation.
– Timeline:2–3 months for free zone liquidation; 3–6 months for mainland liquidation..

5. Cyprus
– Types: Voluntary or compulsory liquidation.
– Timeline: 6–12 months for voluntary liquidation.

Difference Between Liquidation, Dissolution, and Strike-Off

1.Liquidation
– Involves the formal settlement of liabilities and distribution of assets.
– Typically used when the company has outstanding liabilities or assets to manage.

2. Dissolution
– A legal process of terminating a company’s existence.
– Often follows liquidation or when the company has no liabilities or assets.

3. Strike-Off
– Administrative removal of a company from the register without full liquidation.
– Used for dormant or inactive companies.

Key Considerations

– Compliance: Ensure all taxes, debts, and legal obligations are settled.
– Professional Guidance: Engage legal and financial advisors for a smooth process.
– Timelines: Plan liquidation with a clear understanding of the jurisdiction’s requirements.

Contact us today to learn how we can assist with company liquidation in your preferred jurisdiction!

Back in the first quarter of 2018, namely on February 19, 2018, a draft of advisory document was published on the official website of the Organization for Economic Cooperation and Development (OECD), which called on all interested parties to join the discussion on the OECD strategy for combating the loopholes on using the Common Reporting Standard (CRS, Single standard of tax information exchange) in the “citizenship by the investment” (CBI - granting citizenship in exchange for...

Recently, the President of the Czech Republic has adopted the amendments to the Law "On the Residence of foreign citizens" (hereinafter - the Law). The basis for such changes to the Law was the obligation of the implementation of the EU Directives on seasonal employment and permits for the employees transferred within the framework of international concern. However, the bill introduces various measures to combat illegal employment, the problem of which is acute in the Czech Republic. In...

At the end of June, the President signed a law on removing the barriers for the foreign investors, which amends a number of existing legislative norms. In this publication we try to understand what it means for the investors themselves. So, the main achievements of the law are the establishment of the procedure for obtaining the work permit for a foreign investor at the legislative level, as well as determination of the possibility to obtain a residence by the investor (hereinafter -...