Company liquidation in the Isle of Man can be initiated by the company’s directors or shareholders or by creditors. Voluntary liquidation occurs when the management board decides to close due to various factors, such as insolvency or other personal reasons. Compulsory liquidation occurs when a company is ordered to be liquidated by a court. It can be initiated by the company itself, creditors, or government authorities. Our Isle of Man company formation specialists also assist in liquidation procedures and can guide you through the entire process.
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Voluntary company liquidation in the Isle of Man
Closing a company in the Isle of Man can happen through members’ or creditors’ voluntary liquidation, under the Companies Act 1931-2004. Similar principles apply to these types of liquidation under the Companies Act 2006.
Members’ voluntary company liquidation in the Isle of Men begins with the company’s directors making and filing a Declaration of Solvency at the Companies Registry. This declaration confirms that the company is solvent. An important aspect is that this declaration must be submitted no more than 6 weeks before the company sends notifications to its other relevant parties about its resolution to wind up. If these conditions are not met, the liquidation will be classified as a creditors’ voluntary liquidation.
Following the declaration, the company must pass a resolution to proceed with winding up a company in the Isle of Man. The resolution must also be filed at the Companies Registry within one month of its passing. After passing the resolution, the company must appoint a liquidator and notify his/her appointment with the Companies Registry within 21 days. If you do not respect these deadlines, late filing fees will apply. Our Isle of Man company registration agents are qualified to act as liquidators.
Creditors’ voluntary company liquidation in the Isle of Man involves a similar process but is generally initiated when the company is insolvent.
We can help you open a company in the Isle of Man or close it, depending on your business needs.
Compulsory company liquidation in the Isle of Man
The High Court of Justice oversees compulsory company liquidation in the Isle of Man. It is a procedure for insolvent companies. This type of liquidation occurs when a company cannot meet its financial obligations by any means.
The Court appoints a liquidator and this court order must be filed with the Companies Registry. There is no specific deadline for submitting this form, but the liquidator is not authorized to act until the Companies Registry has been notified. We can also assist in compulsory winding up a company in the Isle of Man.
Statistics about dissolved companies in the Isle of Man
If you wish to know more about the subject of closing a company in the Isle of Man, our team has gathered some interesting statistics from 2023:
- 49 foreign companies were closed;
- Under the 1931 Companies Act approximately 1,031 companies were dissolved;
- 1,009 companies were dissolved under the 2006 Companies Act;
- 7 limited partnerships were dissolved.
We can also recommend our partner accountants in the Isle of Man if you need assistance in tax-related matters.
Please do not hesitate to contact our team if you need support in winding up a company in the Isle of Man.