Official liquidation of a company in Malta
The Maltese offshore zone today is the most popular place for registration of offshore companies by entrepreneurs from around the globe. Such high demand is facilitated by flexible local legislation that maximizes the investment attractiveness of a given state for foreign investors, effective policies and a favorable environment for doing business of any scale (from small businesses to companies of national or even international scale).
Yes, Malta is a kind of financial “Paradise”. And it is precisely this aspect that is misleading many entrepreneurs, which lies in the erroneous view that registering a company in a given territory automatically guarantees its success and prosperity, and nothing else can threaten its development and stable work. But this, as already mentioned, is a fallacy. Therefore, each owner of an offshore company must have a good understanding not only of all the intricacies of Maltese law, but also of the procedure for liquidating a company.
Unlike the registration of a company, the liquidation of business objects in Malta is much more complicated, and is accompanied by a number of bureaucratic obstacles. But, having the necessary information, they can be successfully overcome. What you need to know? About this – further in the article:
Two main types of liquidation process of a Maltese enterprise
At the moment, companies with Maltese registration can be liquidated only by two main methods: voluntary or compulsory. Consider each of them separately.
Liquidation of the company voluntarily
This form of this process is the preferred option in the vast majority of cases. It is often used when the need arises for the urgent liquidation of a company in order to avoid losses, etc. In order to begin the voluntary liquidation procedure, the following steps are required:
On the board of directors (or at the meeting of shareholders) it is required to vote on the decision to voluntarily liquidate the enterprise. The decision can be taken only with a sufficient number of votes (according to Maltese law, this requires at least two thirds of the votes).
The management of the company is obliged to provide the regulatory authorities with an overview of the company’s economic activities. This document should also indicate the exact period during which the company undertakes to satisfy all claims from third parties (repayment of debts to creditors, completion of contractual obligations on contracts concluded with other companies, etc.).
A company can be forcedly liquidated only in two cases:
In the absence of meetings of the board of directors or holders of securities for a period exceeding 2 calendar years.
If within 2 years the company has not conducted an electoral process as part of the company’s management, etc.
Stages of liquidation of a company in Malta
As soon as the voting is completed, the management of the company sends a notice of the dissolution of the company (this document should be provided to employees of the register of business facilities). Important! The presence of the voting protocol in this notice is mandatory.
The register of companies appoints a liquidator – an official who is responsible for overseeing the course of the liquidation process and monitoring its compliance with current legislation. Can appoint as one specialist, and the whole team.
The liquidator in the media posted the appropriate notice of the entry into force of the procedure for the liquidation of a particular company.
Companies that have provided funds to the liquidated company on credit are notified of the commencement of the liquidation procedure. In this notice, you must specify the period during which creditors retain the right to deposit their claims.
A general meeting of the company is held at which the liquidator demonstrates reporting on the progress of the operation. The final balance sheet is being developed and demonstrated.
After performing all the above actions, the liquidator submits a petition that a certain company should be crossed out of their Register of Companies. After that, the company is officially liquidated. This procedure takes about 12 months.
The lawyers of our company are leading experts in the field of international financial law with many years of practical experience. We will do everything that is required to liquidate your company with minimum losses of assets and time (in some cases it is possible to save them completely).
For more advice, contact us at the contacts listed on the site.