A proper company shut-down process will give your creditors and customers clear notice of your business's closure, an important step towards 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, specifying the following.
Once the liquidation plan has been approved by a resolution of the directors, it must then be authorised 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 at a general meeting or in writing.
After being formally appointed, the liquidator has strict time frames to undertake the liquidation process and file the following documents with the Registry of Corporate Affairs.
The time frame for completion is from 4 weeks to 4 months, depending on your company’s jurisdiction.
For a company incorporated in Hong Kong, Singapore, UK or the US, if you do business locally you have to file tax reports and audit-related documents, as well as closing all bank account in the local country, before step 4.