A proper shut-down company process will give your creditors and customers clear notice of your business's closure, an important step toward limiting the amount of time you may be subjected to lawsuits.
The directors make a Declaration of Solvency in the approved form which confirms that, in their opinion, the company is and will continue to be able to discharge, pay or provide for its debts as they fall due; and the value of the company’s assets equals or exceeds its liabilities.
The directors should prepare a Liquidation Plan for approval which specifies the following:
Once the Plan has been approved by a Resolution of the Directors, it must then be authorized by a Resolution of the Shareholders. It is required that the liquidation plan is sent to all shareholders regardless of whether such resolution is to be passed in a general meeting or in writing.
After being formally appointed, the liquidator has strict time frames to undertake liquidation process, following documents must be filed at the Registry of Corporate Affairs.
The timeframe to complete take from 4 weeks to 4 months depends on your company jurisdiction.
For a company incorporated in Hong Kong, Singapore, UK, and the US, if you have business locally you have to fill tax reporting and audit related as well as closed all bank account in the local country before Step 4.