Cancellation Of Tax-Free Company

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Cancellation Of Tax-Free CompanyGreenLineXXS

Offshore companies such as the British Virgin Islands (BVI), Samoa, Seychelles and other offshore tax-free companies can quickly and easily handle the process, and only need to pay a fixed annual fee every year. However, if the offshore company does not continue to use it afterward, What should I do?

In fact, the offshore companies that do not renew the annual fee are slightly different depending on the overseas region, but the non-renewable does not mean that the company disappears. If the annual fee is not renewed, the foreign company will be delisted, but even if the company After being delisted, he still has the legal personality of the company,

It is only marked as "removed from the normal company roster". In the case of the removal of the offshore company, as long as the operator is willing to pay the annual fee, fine, and apply for the re-name process, no matter how long the arrears, the foreign company Can be restored to the "normal company" at any time, but with the delay of the default period, the fine will be higher.

 Non-renewal the payment does not mean the company vanish

The delisting of non-renewal payment does not mean that the company is canceled. As for whether the offshore company wants to cancel, it still needs to be decided by shareholders. As for whether an offshore company has been delisted but still exists, whether it will pose a risk to the person in charge will require careful assessment.

 If there is no formal cancellation, there will be no liquidation voucher in the place of registration. Therefore, the competent authority must check, because the company has no way to submit relevant documents to prove it.

Thus, if you do not renew your offshore company's contract, it is best to cancel it by means of formal dissolution and obtain a Certificate of Dissolution issued by the government or related approval documents in order to eliminate possible future risks.

Notice of Company Cancellation

  • After the overseas company expires, you cannot apply for a Certificate of Incumbency and Certificate of Good Standing, and continue to use the bank account. If you have any legal responsibility, it will affect the responsibility of the examiner unit, and the rights and interests of the bank account will also be disputed. 

If you confirm the cancellation, pay attention to the following issues of the company

  1. Has the offshore company signed a contract, and the contract time has not expired yet?
  2. Does the offshore company hold relevant assets, but have not yet been liquidated or transferred?
  3. Does the offshore company hold an account, and has not settled the account and transferred the balance?
  4. Does the offshore company have an investment company, and the invested enterprise is still operating or undergoing a shareholding change?
  5. Does the offshore company still have any matters that are not fulfilled by law or contracted?

Cancellation of basic procedures

  1. Make confirm before the cancellation that the offshore company has no commercial transactions or assets and settle its bank account.
  2. After confirming the liquidation, notify the agency secretary company to prepare the cancellation documents and sign it by the shareholders.
  3. The cancellation documents are sent to the place of registration for the cancellation procedure, which takes about 1-3 months.
  4. Complete the cancellation and obtain the cancellation certificate.