Liquidation of companies abroad

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After Ukraine adopted a number of measures on international exchange of tax information and implementation of the BEPS plan, many owners and top managers decided to liquidate foreign companies. However, in such cases it should be remembered that the closure of a commercial organization should be as correct as possible.

The procedure for liquidation of legal entities in each country is different. Even if the company is registered in a classic offshore zone, you should not abandon the business, hoping that the firm will be struck off the register after a certain period of time. The process of automatic exchange of information between states is gaining momentum. There is a high probability that in a few years the Ukrainian tax authorities will find out about the "forgotten" firm.

Legal closing of a foreign company is not an easy procedure, which takes more than one month and requires knowledge of the legislation of the country where the legal entity is registered. Legal Solutions lawyers working in Kiev will help to close a foreign company correctly and legally.

How to close a company abroad

There are two ways of liquidation of offshore companies:

1. Through striking off the register (strike-off). In classic tax havens, usually firms are removed from the register after non-payment of fees to the state treasury. However, this fact does not relieve legal entities from paying debts and fulfilling other obligations. And in some jurisdictions it is possible to resume the activities of the company. This can be done by either the owner or a creditor by court order. In Panama, a firm can resume 10 years after removal from the register, in Cyprus - after 20. In the Bahamas, the state has the right to seize all assets of the organization after six months after removal from the register.
2. On a voluntary basis (winding up). This method requires considerable time and money, but it is more reliable. Under the guidance of the liquidator, the firm pays off debts, pays all taxes and fees, closes bank accounts.

The main stages of liquidation of companies abroad

Voluntary official termination of the subject of entrepreneurship in onshore, midshore, offshore jurisdictions includes such steps:

1. Adoption of a decision on liquidation by the director, shareholder, beneficial owner, display of this decision in the charter.
2. Payment of debts to creditors, payment of a fee to the state treasury for the liquidation procedure.
3. Appointment of a liquidator (usually an accountant or auditor), who distributes the assets and notifies the registrar of the beginning of the liquidation of the company.
4. Publication of the closing of the company in the official media at the place of registration of the legal entity.
5. Obtaining a certificate of liquidation of the commercial organization.

Legal Solutions specialists will help you with any issues related to closing a business abroad. We provide consultations, prepare the necessary documents.

To order the service, contact our manager by phone or leave a request for a callback.

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