Liquidation Process In Cyprus

Liquidation or dissolution is a term which is used when a company decides to dissolve and materialize all its assets. This usually occurs when the company is deemed insolvent, i.e. cannot pay its debts when they are due. As a result, it collects and materialises its assets to settle its obligations and eventually comes to an end.

The liquidation (dissolution) or wound-up method can be either voluntary or compulsory. The Board of Directors must select the most suitable mechanism for the dissolution of a company, depending on the circumstances. The  Companies Law, Cap. 113 regulates the procedures and requirements for the liquidation of Cyprus companies.

Voluntary Liquidation

Article 261 of the Companies Law, Cap. 113, outlines the circumstances in which a company may be liquidated voluntarily, namely: