Voluntary liquidation happens when a company has no purpose of existence. It can happen by one of two ways:
Strike off method
The company is taken of the register of companies upon application by its directors
This is the simplest way of company shut off, but it can be re-instated on application to the Courts by any interested party in the 20-year period following its removal from the Register.
Furthermore, the Registrar of Companies maintains a discretionary power in deciding about the removal.
The company must be dormant and stripped off its net assets before applying for strike off. Any remaining assets pass to the Government.
A members’ voluntary liquidation happens if the directors are unable to make a declaration of company solvency for the12 months following the commencement of the winding-up.
This is a more complicated and costly procedure and the company can never be re-instated.
Winding up by the court is another form of company closure but this is not at the option of the directors, but rather imposed by the court.
You can find out more about restructuring on a different part of our website.
For more information please download our TAX FACTS leaflet.
Important notice: Liquidations are strictly regulated by Cyprus law and can only be undertaken by licensed Liquidators. Even though CA Tsialoupis & Co are not licensed to carry out liquidations, we have associates who can carry out the process on behalf of our clients.