Close Company in Monaco, Corporate Liquidation Monaco
Company Liquidation in MonacoUpdated on Wednesday 27th May 2015
How can a company be liquidated in Monaco?
The liquidation of a legal entity established in Monaco can be voluntary or compulsory. In certain cases, the legal entity is dissolved without liquidation: dissolution without liquidation by decision of the sole shareholder, the lack of regulation within the legal time, dissolution without liquidation of an acquired company
What are the steps for company liquidation in Monaco?
A voluntary liquidation is requested by the company members in a general meeting and it’s conducted by an appointed liquidator.
A compulsory liquidation is requested by the Court who will appoint a liquidator to conduct the legal entity during the process and take all the necessary steps in order to close the business.
The liquidator can be an individual or corporate body, independent or a former executive appointed for this purpose. The liquidator represents the company in the liquidation process and may take all the necessary decision in order to erase the company from the Registry of Trade.
In addition, the liquidator must elaborate an inventory of the assets and liabilities and then pay the liabilities to possible creditors and distribute the available balance to the entitled shareholders.
The liquidator must, however, be limited to the tasks assigned to it by the partners and cannot continue the current activity of the company in any way without the approval of the shareholders.
The liquidator has a duty to keep associates informed regarding the process at least once a year through a written report, elaboration of a balance sheet and a general assembly meeting.
In order to get the company erased from the Registry of Trade and Industry, the liquidator must deliver the following documents: the original minutes of the meeting of members or shareholders approving the closing of the liquidation or two originals of the minutes of the sole shareholder decides to dissolve the company prematurely or evidencing the dissolution of right and a notice from the Journal de Monaco, two originals of the minutes of meetings of acquiring companies or absorbed approving a merger by absorption or merger, an original of the document and the notice in the Official Journal of Monaco, the original power of attorney signed by the liquidator, unless the minutes contain the proxy to the proxy holder. All the above must then be delivered to the Register of Commerce and Industry to the Department of Economic Development and must be accompanied by payment of the radiation fee.
At the end of the liquidation, the liquidator must convene a general meeting of liquidation, where the partners must approve the final accounts and terminate legal personality.
How long does it take to liquidate a company in Monaco?
The process of company liquidation can take from a few months (when it is involved a small company without many liabilities) to a few years (in case of large corporations).