Liquidations in BVI for Business Insolvency
With over one million companies incorporated and approximately 500,000 active companies on the register, the British Virgin Islands reigns supreme as the world’s premier jurisdiction of choice for corporate domicile. However one of the realities that comes with this distinction is that there will always be a high demand for the liquidation/ dissolution of companies in case of business insolvency. So if you have a BVI Company incorporation and desire to have it liquidated you need look no further. We can offer you the services for Liquidations in BVI for business insolvency , whether you require a Voluntary Solvent Liquidation under the BVI Business Companies Act (as amended) or an Insolvent Liquidation under the Insolvency Act 2003 (as amended).
Voluntary Solvent BVI Liquidation Procedure
Insolvent BVI Liquidation Procedure
- Minimum Fee (Voluntary Insolvent) $3,500.00 plus disbursements
- Minimum Fee (Court Ordered) $10,000.00 plus disbursements
Fees are subject to change based on the specifics of the liquidation
An Insolvent Liquidation when compared to a Solvent Liquidation has a much more complex and involved process and generally does not lend itself to swift processing. For the sake of completeness below is a general outline of the applicable rules and regulations, however if it is determined that a Insolvent Liquidation is required please do not hesitate to contact us for further details and guidance.
Business Insolvency may be established by showing any of the following:
- A failure to comply within 21 days with a statutory demand for an undisputed debt exceeding $2,000.00
- Execution on a judgment being returned unsatisfied
- Balance sheet insolvency (i.e. where the liabilities exceed the assets of a company)
- An inability to pay debts as they fall due.
Once it has been determined that a company is Insolvent, there are two ways of applying for the appointment of a liquidator.
- Members can appoint a liquidator out of Court by a 75% qualifying resolution
- By an application to the Court.
The liquidator of an insolvent company must be a BVI Licensed Insolvency Practitioner. An overseas practitioner who is not BVI-licensed may be jointly appointed with a BVI Licensed Insolvency Practitioner.The liquidator has wide ranging powers including the power to sell the company’s property and to borrow money and grant security over assets.
The liquidator in carrying out his duties generally is required to call a meeting of creditors and a creditor’s committee may be appointed. The liquidator is subject to the control of the court and has strict advertising, notice and reporting obligations under the Insolvency Act 2003.
For further information on BVI Liquidation Services, please call us at (284) 494-6777 or email us at email@example.com . You can also get in touch with our liquidation expert here.