To become successful, a business must make decisions that enable it to operate profitability and to stay solvent. A company that has sufficient cash to pay its debts promptly is said to be solvent. In contrast, a company that finds itself unable to meet its obligations as they fall due is called insolvent. A business that becomes insolvent may be forced by its creditors to stop operations and its existence.

Entrepreneurs and business owners tend to closed down their businesses in certain circumstances. Sometimes, selling the business is not the remedy. Various alternative ways can be adopted for business closure such as winding up or statutory liquidation and simply deregistering the business. Each ways has certain legal and cost implications especially costs of closure including employees’ benefits and separation pay.
When you have decided to close your business, there are many things to be considered like a number of issues, such as company and business name cancellation, employee payments, cancellation of taxation registrations and other related concerns.
At Panwa Group, we will guide you in the process of closing down your business. Our team provides professional tax advice that can help you minimize your tax liabilities and possible losses. We offer quality and timely service in dealing with government sectors, and other entities involved in this process.
There are some factors to be considered in closing down a business:

• Business closure preparation
• Owner’s responsibilities
• The cost of closing down
• Tax and VAT issues
• Insolvency and Bankruptcy

Cancel - Closed Company Registration
You can cancel a company’s registration if:

• all members of the company agreed to deregister; and
• No creditor is seeking to liquidate the company.
• the company is incapacity to carryon business
• the company's assets are worth less than the desired capital; and
• the company has paid all fees and penalties payable under the laws of corporation
• the company has no outstanding liabilities; and
• the company is not committed to any legal proceedings.
• All business liabilities have been paid.
• All company assets have been distributed in accordance with the Business Act and the company constitution.
• You have written notice from the Revenue Department stating that they have no objection to the company being removed.
• If you are filing for a formal removal you have a copy of the special resolution of the shareholders that the company be removed from the register.
• If your company has been in liquidation the liquidator has filed the prescribed final reports and accounts

Other people to be informed:

• Creditors - who may have claims on any remaining assets in the business
• Clients or customers - to finalize your accounts for taxation purposes, any outstanding receivables should be collected
• Suppliers – to cancel any pending contracts

Other things to be cancelled and closed:

• Bank accounts
• Leases on any business equipment or premises
• Rental agreements
• Telephone connections
• Utilities such as water and electricity connection

Closing a business can be stressful. If you are seeking for professional advisers and specialist, and you wants to know information on what to do when you close down your business, please feel free to contact us.