Why Liquidate your BVI Company
Updated: Jun 21, 2020
BVI Liquidator can assist with dissolving your BVI Company when its no longer required
Voluntary liquidation is a straight-forward and inexpensive process that brings the company to an orderly end and provides formal closure and certainty to the affairs of the company. BVI Liquidator will assist with the whole process from A-Z. In many cases where the company has already disposed of its assets and settled all its liabilities the entire liquidation process can be completed within four to six weeks. The steps involved in a voluntary liquidation are simple; the first is for the company to prepare a plan of liquidation. This requires the company to identify one or more liquidators. A voluntary liquidator cannot be another company or other body corporate - it must be an individual - but, save for regulated companies, does not have to hold any specific qualifications or be resident in the British Virgin Islands (BVI).
There are some restrictions on who may be appointed to act as a voluntary liquidator of a company. In particular, an individual, or any person who is a close relative, who is or at any time in the two years prior to commencement of the liquidation has been a director or acted in a senior management position and whose functions have included financial management of the company or any affiliate is disqualified from acting as a liquidator (although there is no restriction on an external auditor acting as liquidator). The company must then formally approve the liquidation plan and the directors must adopt a solvency declaration that the company can meet its debts as they fall due and that its assets exceed it's liabilities. Once appointed, the voluntary liquidator must advertise the commencement of the liquidation. Broadly this provides for advertising locally (in the BVI) and in the company’s principal place of business (if that is outside of the BVI) or (if the company has no principal place of business) where the liquidator believes such advertising is most likely to come to the attention of the company’s creditors.
The liquidator’s duties are, broadly speaking, to take possession of and realize all of the company’s assets, pay and discharge all of the company’s obligations and liabilities and to distribute surplus assets to the members. The liquidator should prepare statements of account and, if required by the plan of liquidation, send it to all of the members.
Upon completion of the liquidation, the liquidator (BVI Liquidator) will make filings and publish a notice confirming that the liquidation is complete. The Registrar will then strike the company off the Register of Companies and issue a Certificate of Dissolution. The date of dissolution is significant since after this date, the company no longer exists and the company can no longer incur liabilities or sue or be sued.