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Company Liquidation in Seychelles

Company Liquidation in Seychelles

Company liquidation in Seychelles can be initiated for a variety of reasons. Investors can close a company in Seychelles because it has achieved its purpose or because the investors do not want to continue the business activity. These are optional reasons for which winding up is possible.

However, investors may also start this procedure because they have to, and this happens when the company can no longer sustain its business activities, due to a lack of cash flow. In this case, company restructuring may be possible or, if not, the company needs to be closed down.

Regardless of the situation in which a businessman may be in, the process can be initiated through voluntary winding up (through this, the company’s owners address the local institutions and submit the required paperwork). Our team of consultants can offer full assistance in winding up a company in Seychelles.

What are the main options to close a company in Seychelles?

A company in Seychelles can be enter the liquidation process by the voluntary decision of the shareholders or by being struck off. The latter refers to the procedure initiated by the state in the case in which the company’s representatives do not pay the yearly renewal fees.

These fees are mandatory once an investor will set up a company in Seychelles and they must be paid on an annual basis. For voluntary company liquidation in Seychelles, investors have to take the following measures:

  1. the shareholders must meet and sign a document in which they agree for the dissolution of the company;
  2. it is also required for the company to not have any liabilities or be involved in litigation cases;
  3. it is mandatory that the company is still solvent at the moment when the shareholders apply for dissolution;
  4. the shareholders must issue a public announcement concerning the winding up, in a local newspaper.

It is also necessary to prepare other company documents, such as: the certificate of incorporation, the memorandum, the Articles of Association and the registers of shareholders and directors. For this procedure, the company’s accounting records are necessary (for the last 7 years or, if the company has been active for less than 7 years, for the respective years of activity).

Our team of specialists in company formation in Seychelles can advise on other documents necessary for the procedure (personal documentation of the shareholders and directors are mandatory, along with documents attesting the company’s address). Please know that for winding up a company in Seychelles, it is legally required to appoint a liquidator.

Striking off method in Seychelles

Winding up a company in Seychelles is also possible through the striking off method. This procedure refers to the legal action that is taken by the country’s Registrar’s to strike off the company’s name from its registers. By this, the Registrar will delete the company’s trade name from its files, thus forcing the company to enter the dissolution procedure.

This happens because once the name is no longer registered, the company can’t develop any commercial activities. Striking off happens when a company failed to pay its annual fees, which are mandatory after the process of company incorporation in Seychelles. Regarding this, the following apply:

  • late payments of governmental fees will result in a 10% penalty, if the payment will be made in the first 90 days since the date due;
  • after the 90 days term, the Registrar will apply a 50% penalty and if the company will not pay the fees, the Registrar will have the right to strike off the company’s name from its files;
  • striking off can also happen as per the rules of the Section 5(2) or the Section 164 of the International Business Companies Act 2016;
  • company owners have the right to restore a struck off company within 1 year since its deletion from the Registrar (this is applicable for all types of companies, such as the Seychelles offshore company or the Seychelles IBC).

We invite you to address to us for other matters, such as the Seychelles offshore registration. Additionally, you can refer to our team for immigration to Seychelles for business purposes. Businessmen interested in company liquidation in Seychelles are invited to contact us for more details.