Voluntary Winding Up
There are two types of voluntary winding up:
– Creditors’ voluntary winding up
– Members’ voluntary winding up
Companies which are solvent enough to settle their debts within 3 (three) years of the commencement of liquidation are eligible to opt for a Members’ Voluntary Winding up. The process goes in the chronological order as follows:
Pre-Dissolution Compliance
The most important issue before going into dissolution is to make sure that the compliance under different regulators are up to date as otherwise the process of liquidation gets delayed significantly. Our compliance team can help you iron out all non-compliances which includes (but not limited to) the following:
Periodic Tax and VAT Returns
Statutory Audit
CIT Return Filing
Annual Schedule X Filing
Trade License Renewal
FDI Return Filing
14 Days’ Reporting
After all the pre-winding up compliance are brought up to date, the process of Members’ voluntary winding up can be undertaken in the following order:
Step 1
Board Meeting and Declaration of Solvency
Auditors’ Report on Company Affairs
Audited Financial Statements and Tax Clearance
Step 1 Submission to RJSC
Step 2
Special Resolution in Extraordinary General Meeting (EGM)
Newspaper & Gazette Publication
Step 2 Submission to RJSC
Notification to Other Regulators
Liquidation Proceedings by Liquidator
Step 3
Liquidator’s Accounts &Final Tax Clearance
Newspaper & Gazette Publication
Final General Meeting (FGM)
Step 3 Submission to RJSC
Step 4
Cancellation of Other Registrations (e-TIN, BIN, Trade license etc.)
Distribution/repatriation of Residual Funds
Closing Bank Account(s)