RIP: Winding Up A BVI Company Through Voluntary Liquidation

"All good things must come to an end." – Well-known saying by Geoffrey Chaucer (1374).

Why Choose Voluntary Liquidation

BVI companies are commonly incorporated without a specific termination period. However, once they have served their useful business purpose their owners must consider the best way of terminating the entity. Under BVI law, when a BVI company has not paid its licence fees for a period of seven consecutive years it will be deemed dissolved.

Although some owners opt to use this route, it is not advisable. During that period, the company still exists and may be sued and incur liabilities. Fiduciary duties of company directors also remain during that period.

Accordingly, the best way to formally terminate a solvent BVI company is through a voluntary liquidation process, which is quite straightforward and puts the company to rest once and for all.