Closing Down a Cyprus Company

Where it is not possible to overcome the hassles faced by a business, we offer solutions and services in order to handle its closure smoothly and efficiently.

With licensed Insolvency Practitioners as members of our team, we are able to take appointments and deal with a wide range of Business Recovery and Insolvency Services, including the ones briefly presented below.

a. Receivership

A Receivership is used for the purpose of enforcing a security on a debt. A receiver is usually appointed by a bank or other financial institution or creditor based on an agreement or financial instrument (such as bond or debenture) which incorporates a fixed and/or floating charge over the assets of a company. It is often the case that a perfectly viable business is being strangled because of a third party commitment and a Receivership offers the opportunity for an attempt to save the business, including in some cases the sale of it as a going concern.

We can act as a Receiver or advise a business where a Receiver is appointed by a creditor.

b. Liquidation

A company going for liquidation can be in a position to meet its financial obligations (solvent) or it can be insolvent. Starting from the latter, a winding up can take the form of a Court or Compulsory Liquidation or a Creditors Voluntary Liquidation.

For such cases we can offer the following services:

    • Act as a Liquidator on behalf of either the company or its creditors following the appointment of the Official Receiver
    • Prepare the Statement of Affairs
    • Attend the creditors meeting
    • Review a creditor’s claim against the company
    • Advise on retention of title rights

For what concerns solvent businesses the usual way to close down is through a Members Voluntary Liquidation. However, for very simple cases, for example where a company has been dormant throughout its existence, a Strike Off procedure can be used. You can find more about the two procedures in our related infographic.

We can provide the following services for companies closing down either through a Members Voluntary Liquidation or a Strike Off procedure:

  • Act as the Liquidator of the company
  • Develop asset distribution plan
  • Handle the Strike Off procedure

c. Examinership

Examinership is a procedure which facilitates the exploration of all opportunities for survival for companies which are otherwise insolvent.

It involves the appointment of an Examiner to scrutinize the business and steer the company through a restructuring period, the purpose of which is to provide a breathing space.

On behalf of the company we can:

  • Assist a company in determining whether Examinership would be suitable for it
  • Act as the Examiner if nominated by the shareholders, directors or creditors
  • Advise and assist companies in preparing their application to the Court for the appointment of an Examiner