For one reason or another, the owners of foreign companies, both classical offshore companies and midshore companies, onshore companies, are faced with the need to liquidate foreign business. Not always the best way – just leave the company. In certain cases, such inaction threatens with fines, "black" visa list and even criminal liability.
In each state – own procedure for closing a business. Somewhere this is a long and expensive process, but somewhere just deleting it from the registry is enough. However, in any case, a lot of nuances should be taken into account in the liquidation operation. For example, the property of an organization deleted from the registry, which was registered in the Bahamas, is confiscated by the government without the right to return, even in court. To avoid unpleasant surprises, it is best to contact specialists.
The Key Solutions team has significant experience in the field of liquidation of foreign companies and will help close the legal entity in accordance with the requirements of the legislation of the country of jurisdiction and without penalties.
Methods of liquidation of non-resident companies
There are two main ways to "get rid" of from offshore:
- liquidation of foreign companies by deletion from the register;
- voluntary close.
The first case is suitable for classic tax havens. A legal entity is automatically deleted from the register in case of non-payment of the state fee. True, this fact does not cancel the management and shareholders from obligations that have already arisen or may arise in the future.
If the beneficiary of a classic offshore fears that someone may take advantage of a non-working company or it is required to provide evidence of business closure, the offshore activity is extended and a full-fledged liquidation procedure is initiated, as a result of which the owner receives a document confirming the completion of the liquidation process of a foreign company.
In case of voluntary liquidation, there are several steps to go through:
- Making a written decision on liquidation.
- Payment of all debts, duties, repayment of obligations.
- Appointment of a liquidator (accountant, auditor) who notifies the registration authority of the liquidation procedure.
- Publication about liquidation practice in the official source of the state where the legal entity is registered.
- Issuance of a certificate of liquidation of a foreign company.
It should be remembered that the process of voluntary liquidation can take up to six months.
What services do we provide as part of the liquidation procedure
Key Solutions deals with:
- advising beneficiaries on closing companies in specific jurisdictions;
- preparation of documents (plan for the liquidation of a foreign company, statement of satisfaction of creditors' claims, etc.);
- representing the interests of the client in negotiations with creditors;
- legal support in mergers and acquisitions of organizations.
Our employees provide consulting and practical support to the client at all stages of the liquidation procedure.
Do you want to close a company abroad, but don't know where to start? Contact Key Solutions. We will provide detailed advice and provide legal assistance in the future.