Lawyer
Expert in corporate and international corporate law. Has extensive experience in supporting the acquisition of financial licenses in Ukraine, as well as business incorporation in the EU, the United Kingdom, Switzerland, the UAE, and key Asian jurisdictions.
Liquidation of a company in Cyprus
Cyprus law requires mandatory liquidation of a company if it ceases to operate.
Sometimes the company’s articles of association may provide for the possibility of cancellation even at the time of registration.
Then the statute must contain the conditions under which the company must be liquidated, the body that makes the decision on liquidation, and the procedure for repaying debts.
Methods of liquidation of the company
According to the laws of Cyprus, there are three ways to liquidate a company:
- By court decision.
- Voluntarily.
- With the help of judicial supervision.
First of all, it should be noted that there are 2 types of voluntary liquidation
- By decision of the participants, i.e. shareholders of the company.
- At the initiative of creditors.
The first type of voluntary liquidation assumes that at the time of initiating the liquidation procedure, the company must be solvent and may or may not have assets.
By the time of liquidation, the company must close all bank accounts, which is confirmed by references, and also prepare liquidation reports.
Stages of the liquidation procedure
- First. Selection of the date of liquidation: a liquidator is appointed, the director signs a declaration of solvency, affixes an affidavit on it and submits documents to the register of companies.
- Second. Submission of two publications to the newspaper.
- Third. Addition of documents that were not previously submitted to the register of companies.
Under standard conditions, after three months, the company must be liquidated. In confirmation of this fact, a certificate is issued by the register of companies.
The advantage of this type of liquidation is the time frame clearly limited by the law and the minimal involvement of the court.
He can only be involved if the appointed liquidator is incompetent and needs to be replaced.
The second type of voluntary liquidation involves a rather complicated and expensive procedure. In fact, it is liquidation through bankruptcy.
Strike-off procedure: administrative exclusion from the register.
Based on the resolution from the company’s shareholders, the board of directors makes a decision to exclude the company from the register. All necessary financial statements of the company must be submitted before the procedure begins.
The company must be removed from the tax register and must have a tax clearance certificate. A letter is sent to the registrar of the company on behalf of the director of the company indicating a request to exclude the company from the register and confirming that the company has no outstanding liabilities.
After submitting such a letter, the registrar conducts an inspection of the company and publishes an official notice in the official newspaper of Cyprus about the removal of the company from the register.
The peculiarity of this method is that it is not a full-fledged method of liquidation. After 20 years from the moment the company was removed from the register, it can be restored at the initiative of the tax authority or any interested third party.
The company can be excluded at the initiative of the registrar himself if he becomes aware that the company is not carrying out economic activity or because of the company’s debts; or at the request of the company itself.
This method is suitable for companies that have neither assets nor liabilities to third parties and the state. Although this method is quite quick and easy, it also requires the submission of all financial statements.
If you have decided to liquidate a company in Cyprus, the specialists of the law firm “Prikhodko and Partners” can help you choose the method of liquidation just for you, in order to start and go through the whole process as quickly as possible.
Calculate the cost of services
1 question
Have you chosen the method of liquidation of the company?
2 question
Have you submitted your financial statements?
3 question
Do you need advice on the procedure for liquidating a Cyprus company?
You may also need:
OPENING A BANK ACCOUNT IN ESTONIA
Read moreREGISTRATION OF A BUSINESS (FIRM) IN THE CZECH REPUBLIC
Read moreREGISTRATION OF A BUSINESS (FIRM) IN THE UK
Read moreOpening a crypto-friendly account
Read moreOPENING A BANK ACCOUNT IN GREAT BRITAIN
Read moreCompany Registration in the UAE
Read moreCompany Registration in Austria
Read moreOPENING A BANK ACCOUNT IN AUSTRIA
Read moreOPENING A BANK ACCOUNT FOR A GAMBLING BUSINESS
Read moreOpening an account in a foreign bank
Read moreREGISTRATION OF A BUSINESS (FIRM) IN POLAND
Read moreBrand name registration
Read morecall back
during the day
Compensation for moral, material damage
Protection of honour, dignity, and business reputationContract Development for Business and Legal Entities
Licensing of business activities
Compensation for moral, material damage
Legal services in the field of cryptocurrency and blockchain
REGISTRATION OF COMPANIES AND OPENING OF BANK ACCOUNTS
Sale and purchase of ready-made firms
Grants and attracting investment
Business registration and support in Great Britain
Business registration and support in Switzerland
Business registration and support in the EU
Business Registration and Support in the Gulf Countries (GCC)
Business registration and support in Turkey
Business registration and support in USA
Lawyer for administrative cases
Legal services for medical businesses and doctors
Protection of honour, dignity, and business reputation
Real estate transaction support
Escort of the tender participant
Trial lawyer: support and defense in court
European Court of Human Rights (ECHR)

