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Closing the offshore in 2021

How to close an offshore in 2021

2021-01-06
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It may be necessary to close offshore in 2021 as a result of changes in the laws of the country. Closing needs to be handled carefully to avoid fines and other penalties. Check with our specialists at IT-OFFSHORE to find out the steps of the procedure in each country.

Nuances of the procedure

If you need to close an offshore in 2021 you must comply with all legal and regulatory requirements to avoid fines and confiscation of property. Each country has its own nuances of legislation.

Under the laws of the Bahamas, if the firm has not distributed the assets before leaving the Registry, they will be confiscated after six months. Some jurisdictions automatically liquidate assets if an annual fee is not paid, such as the BVI.

Here are the ways to close the company:

  • Strike the organization from the Registry;
  • Undertake voluntary liquidation proceedings;
  • Carry out the liquidation procedure as a result of bankruptcy.

The easiest way to liquidate an offshore company is to strike it off the commercial register. However, if the owner closes the company by failing to pay the annual fee, there will be a loss of good standing. Crossing out occurs if the firm loses its registration agent, operations have been discontinued, or any document has not been filed.

A company can only be voluntarily wound up if there are no liabilities and the firm is solvent. Such liquidation is possible only if the company is in good standing. The founders are required to draw up a corporate resolution with the decision to voluntarily close. A declaration of solvency is prepared and a liquidation plan is approved.

It includes the following:

  • Purposes of closure;
  • Timing of the procedure;
  • Details of the individual who is the liquidator.

In some countries, a company can be forcibly closed if there is no renewal fee. Clarify in more detail the nuances of closing a company with our specialists.

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