Company Strike-off & Dissolution process:
The process of dissolving a company can be complex and time-consuming depending on each individual case.
In the case of International Business Companies, whereas the company does not have any assets or liabilities, the following documents need to be filed with the registry:
- Bank statement-closure letter
- Declaration signed by the directors-beneficial owner that the company does not have any assets or liabilities
- Resolution of the dissolution which needs to be signed by a. the director(s), b. the shareholder(s) of the company, who will also need to confirm the appointment of a liquidator.
The documents need to be sent to the registered agent no later than 21 days from the date that the resolution was passed. Then, the registered agent will file a request and a plan for dissolution to the registry.
The registry will register a dissolution which will be then posted by the Registered Agent in the local newspaper. The same notices must be posted in the local newspaper of any countries where the company was carrying out business. The liquidator then produces a statement which is filed with the registry and the Certificate of Dissolution is finally issued.
Any company can request a dissolution and the fees differ depending on the jurisdiction. For a company to be dissolved, the shareholders of the company must agree on the dissolution. Also, the company must not have any assets or liabilities and should not be involved in any litigation.
The amount of time it takes for a company to be dissolved is based on the particulars of the company’s business. The document that you will receive once the company is dissolved is a Certificate of Dissolution from the Company Registry.
For a successful dissolution to be achieved, the company also must file Annual Returns. In case you wish to restore a company, there needs to be an application submission to the Registrar or the relevant authority of the jurisdiction.
We note, that there are various procedures through which a company ceases existing, for this reason please check the following definitions:
Dissolution (Liquidation) is the whole process of formally closing down a company and it protects against future liabilities.
Striking off is when the Registrar of Companies literally strikes the name of the company where there are implications that the company is not in operation anymore. The company is dissolved when its name is struck of the Companies Register. The process is a statutory power and a responsibility of the Registrar.
Winding up is the process of settling the accounts and liquidating the assets of a company to distribute the net assets to members and debtors (if any) and then dissolve the company.