There are three major methods for dissolving a company in Cyprus. Whether it is your decision to strike-off, or there is voluntary liquidation by creditors or shareholders or a company is being forced to liquidate, our law firm has the required expertise to deal with any legal matter that may arise.
If you have decided to have your company struck off, Y. Argyrides & Associates LLC is capable of supporting you all through the process, which entails the following steps:
- Strike-off happens to be the simplest method as the company is not dissolved formally, it is only struck off from the companies’ register; no court proceedings are involved and the company is likely to be reinstated later, unlike what obtains when there is liquidation.
- To have the strike-off process completed, the company’s financial statements have to be prepared and submitted along with the necessary return of income tax to the Cyprus Tax Authorities. Then, the latter will give a Tax Clearance Certificate to the company; provided that it has settled any tax liabilities.
- All of the company’s directors must attest to a Declaration of Solvency (affidavit) that serves to confirm that the company has neither assets nor liabilities, that is, it is capable of settling its entire debts, and is no undertaking business activities.
- Usually, this method is employed following the company’s decision to stop business activities. There is a need to formally appoint a liquidator so as to distribute particular assets, mainly for tax reasons.
- If at any point the company has no capability to settle all its debts, a voluntary liquidation at the instance of shareholders also becomes a voluntary liquidation at the behest of the creditors.
- All the company debts have to be settled within one year from the time the winding up begins.
- A liquidator must be appointed to call all the shareholders to a meeting where the final accounts will be presented, giving details of how the company’s assets will be distributed.
- Many circumstances can necessitate compulsory liquidation: if the company’s financiers have sent a petition to the Court; or the company failed to have the statutory report submitted to the Registrar of Companies; or the company did not start operating for more than a year after registering it; or the company happens to be a publicly listed company which has had its members reduced to less than 7; or the company is not capable of paying its debts
- The procedure entails a fee which must be paid to the Registrar of Companies and the Official Receiver prior to the submission of the application to the Court and must be sent along with an affidavit.
- The application is fixed for hearing within 30 days. If in the course of that time there is no objection, the Court will have the application rescheduled for proof in not more than 30 days, and it will be reported in the Official Gazette of the Republic of Cyprus that the company has liquidated.
- The Order will be submitted to the Companies’ Registrar and the Court will appoint a liquidator.
- After all the debts have been covered, the Court will formally dissolve the company.
Establish contact with our team of international lawyers and we will be glad to give you advice regarding the most appropriate method for the dissolution of your company and offer assistance to you from the beginning to the end of the liquidation process.