Company liquidation in Belize takes place when the business can no longer sustain its activities. However, a condition for this process is that the legal entity is able to pay its debts.
Investors who need to close a company in Belize can reach out to our local team of experts who can answer essential questions about the process. In doing so, they can make sure that they follow all the needed steps, and that the business is officially struck off from the Registrar.
Our team specializes in company formation in Belize, however, we are also able to assist with the winding up of a Belizean international business company, or other business forms.
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The liquidation of a company in Belize
The process of winding up a company in Belize includes several steps made by the directors of the company. The ones listed below apply in the case of voluntary liquidation:
- make a declaration of solvency, stipulating that the company will be able to pay its debts to creditors as these become due;
- approve a liquidation plan which will include the reasons for company liquidation in Belize, the estimated time to complete the process, the appointment of a liquidator who will vary on the process, and other information.
| Quick Facts | |
|---|---|
| Voluntary company dissolution | When the company is no longer profitable |
| Conditions for liquidation | The company must have no liabilities or it must be able to pay its debts by the end of its dissolution. |
| Declaration of solvency | Must be drawn up before the commencement of voluntary liquidation in Belize. |
| Liquidation plan | Drawn up to reflect the reasons for the liquidation, the estimated duration and other details. |
| Liquidator use | Mandatory |
| Liquidator appointment | Usually appointed by the company’s directors |
| Situations in which the liquidator is not appointed voluntarily | When the directors do not submit a declaration of solvency, when the liquidator does not consent in writing to the appointment, and in other cases. |
| Conditions for the liquidator | Must receive approval for registration as a voluntary liquidator from the Commission. |
| Liquidator’s powers | Takes custody of the assets, sells the assets, collects debts, negotiates, settles debts, etc. |
| Company activities during liquidation | The liquidator may be approved to carry out the businesses’ activities during the liquidation process if this is in the best interest of the members and/or creditors. |
| Company liquidator appointment term | Usually two years, unless approved otherwise by Court. |
| Approximate liquidation process duration | Several months |
| Company striking off | The Register can strike off a company that does not appoint a Registered Agent and in other cases. |
| Company dissolution | When the company has been struck off the Register and it remains as such for five years. |
| Company winding up by Court for non-activity | When the company does not commence its business within one year from incorporation and in other cases. |
The liquidation plan needs to be approved by the company directors no more than 6 weeks prior to the date on which the resolution to appoint a liquidator is made.
Investors who wish to open a company in Belize, and who will act as company directors, should note that they will bear liability under this role, in the event of company liquidation in Belize. A company director who falsely states that the company is solvent and able to pay its debts, but fails to do so, is liable to a fine of $100,000.
Our team can give you more information about the director’s duties during the processes that will close a company in Belize.
The company liquidator
A person can act as a liquidator in order to close a company in Belize only if not expressly disqualified from acting as such. One can be disqualified when:
- he is an individual subject to disqualification or the equivalent thereof under the laws of Belize;
- he is a restricted person under the law;
- he is a minor;
- he is an undischarged bankrupt;
- he is, or has been at any point during the last two years, a director of the liquidated company, or that of a company affiliated with the liquidated legal entity;
- an individual who acts, or has acted at any point during the last two years, as a senior in a management position in the company that will be wound up (or an affiliate company thereof);
- a close family member of an individual who acted in one of the two capacities described above.
The Financial Services Commission receives the application for the appointment of the liquidator in Belize, reviews it, and makes a decision.
The following short video summarizes the process:
Assistance for winding up a company in Belize
Business owners who wish to terminate the activity of a company in Belize can rely on our complete assistance for the voluntary liquidation process.
You can reach out to our team for more information about company liquidation in Belize.
Apart from matters related to incorporating and terminating businesses in Belize, we also assist investors with many other services.
For those who are interested in knowing more about the economic situation in Belize, we list a set of recent data below:
- the total value of imports in November 2023 amounted to $209.1 million; this is a reduction from the same month in 2022;
- domestic exports increased slightly in 2023, on a year-on-year basis, amounting to $22.8 million;
- the overall inflation rate was 4.2 percent in November 2023.
Do you need other services for your company? Or perhaps you need solutions that can be provided by our lawyers in Belize, such as those for immigration to Belize? Contact us for more information about our services.