Company liquidation in Mauritius falls under the Insolvency Act after the government gathered various laws to provide a clear procedure for those seeking to close their businesses. There are several proceedings for winding up a company in this country.
Below, our company formation agents in Mauritius explain how you can close a company in this country through the 3 available procedures.
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The main ways to close a company in Mauritius cover 2 voluntary and judicial procedures, as presented below:
Each of them is subject to specific criteria to be met when the decision is made.
According to the law, company liquidation in Mauritius implies winding up the assets of the entity in order to pay the debtors. Following that, any remaining proceeds will be distributed among the shareholders.
| Quick Facts | |
|---|---|
| Applicable law | The 2009 Insolvency Act. |
| Conditions to liquidate a company | – shareholders’ agreement, – the company no longer complies with the Company Law’s provisions, – the business no longer meets the Articles of Association provisions, – the company is indebted. |
| Types of procedures | Voluntary and compulsory procedures are available for company liquidation in Mauritius. |
| Voluntary company liquidation | Voluntary liquidation is possible through a shareholders’ or creditors’ mutual understanding. |
| Judicial company liquidation | Such proceedings are completed in a local court of law. |
| Appointment of a liquidator in a voluntary procedure | The liquidator is chosen among the company’s directors and is appointed during the meeting in which the liquidation is decided. |
| Appointment of a liquidator in a mandatory procedure | The judge will appoint a court officer as a liquidator. |
| Authorities to notify in case of liquidation | – the Companies House, – the Tax Department. |
| Requirement to notify other parties (YES/NO) | Yes, the employees must also be notified about the company closing. |
| Notice requirements | After the decision to close the company has been made. |
| Additional accounting requirements to comply with (if any) | A final financial statement must be drafted and filed with the tax authorities and Commercial Register. |
| Company liquidation time frame (approx.) | Approx. 3 months in the case of voluntary proceedings, more in judicial procedures. |
| De-registration with the Mauritius Tax Department required (YES/NO) | Yes. |
| Trade Register deletion requirement (YES/NO) | Yes, the company must also be struck off the Trade Register. |
| Company liquidation support (YES/NO) | Yes, our company formation agents in Mauritius can assist in liquidation matters. |
Winding up a company when the decision is made by the shareholders is known as a members’ voluntary liquidation. In this case, the procedure requires the owners to convene a meeting during which the decision to close the Mauritius company is made and the liquidator is appointed.
The liquidator can be chosen among the directors and from that point, the respective person will be in charge of activities of the company. The first and most important duty will be to notify the Companies Register, creditors, employees, and other interested parties about the liquidation.
If you need advice on this type of company liquidation procedure, our lawyers in Mauritius are at your disposal.
Another scenario is when the company is insolvent, and the creditors meet to decide to ask for the company to be closed. The decision is made by creditors in this case, with the approval of the shareholders.
The creditors will appoint the liquidator who will take control of the company and its assets. In this scenario, the following things must also be considered:
If you need any information about the provisions of the Commercial Code, our company registration consultants in Mauritius can advise you.
Compulsory company liquidation in Mauritius will also commence at the request of the creditors. However, in this case, the procedure begins after the petition is filed with a local court of law, and the judge is the one declaring the initiation of the winding up proceedings. It is also the judge who appoints the liquidator in this case.
Here is also an infographic on this topic:
No matter the way a company is liquidated, it ceases to exist after a petition for its deletion from the Companies Register’s records is filed. The request will be filed by the liquidator.
Mauritius’ economy is currently striving, however, during the COVID pandemic, a large number of companies downsized or closed. According to the government:
If you need more information on liquidation, you can rely on our lawyers. They are also at your disposal with other services, among which immigration and obtaining citizenship to Mauritius, applying for a Mauritius Forex license, or opening a bank account in Mauritius.
Contact us and find out more about our company liquidation solutions and other legal services. Among them, we remind you that we can also help with business registration in Mauritius.
