Before delving deeper, let us clarify what business liquidation entails. Businesses liquidate and individuals sequestrate. A company should do a voluntary liquidation when the company is unable to pay its debts as they become due, or if the liabilities exceed the assets. Company liquidation in South Africa means the company debts are dealt with after liquidation, meaning creditors may not collect the debt from you or your business after liquidation. During the liquidation process, creditors come together and are obliged to share any available assets in order of preference. If there are insufficient assets or proceeds, they receive nothing and must write off any remaining balances. Liquidation effectively closes the door on financial problems and resolves all outstanding issues. This means you are free to start anew once you have emigrated.
What Does Liquidation Mean?
Businesses undergo liquidation, while individuals face sequestration. A company should opt for voluntary liquidation when it cannot pay its debts or when liabilities exceed assets. In South Africa, company liquidation means that debts are settled post-liquidation, preventing creditors from collecting any remaining debts. During this process, creditors share available assets based on priority. If assets are insufficient, they receive nothing and must write off the remaining balances. Liquidation effectively resolves financial issues, allowing you to start anew after emigration.
Benefits of Business Liquidation Before Emigration
f you liquidate your business in South Africa before emigrating, your departure will remain unaffected. The business liquidation process applies solely to the company, a separate legal entity, meaning directors are typically not impacted, except for any signed sureties. Liquidating while still in South Africa is beneficial, as certain documents must be signed before a commissioner of oaths, who may be difficult to access and costly overseas. Let me know if you need any more changes or additional assistance!
Liquidation after Emigration
It is very possible to do a voluntarly liquidation of a South African company from abroad. However doing so will typically incur higher costs than if you had liquidated before leaving South Africa. As previously mentioned, finding a commissioner of oaths can be costly, and original documents must be couriered back to South Africa, which adds to the expense.
The Sooner the Company is Voluntary Liquidated the Better
It is better to follow the voluntary liquidation process before departing for the aforementioned reasons of cost. This approach not only simplifies matters but also provides peace of mind so that you do not have lingering worries while adjusting to life in a new country. However, if you are already settled in your new country, it is still possible to liquidate a company in South Africa. We have clients worldwide and can assist you electronically through Zoom meetings or WhatsApp calls. We are ready when you are.
Call a Liquidation Lawyer Today
We will assist you with a swift liquidation. In only 5 days your company can be liquidated, so that you can travel to your new destination with ease of mind.
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