Dissolving a solvent IOM company under the 273a administrative procedure; Explained

The easiest way to dispose of a solvent Isle of Man Company which is no longer required is under the 273a administrative procedure. The Registry has issued a Practice note on the topic.

The key elements are…

(i) The Company must be a private Company.

(ii) The Company must be solvent and must have ceased its operations.

(iii) Before making an application, the applicant, being a director, secretary or member,  must have sent a notice to each director, secretary and member of the company stating that the applicant proposes to apply to the Financial Supervision Commission for a Declaration of Dissolution and that, unless written objection is made to the Commission within one month of the date the notice was posted, the Commission may dissolve the company.

(iv) The applicant must complete, sign and lodge the application and declaration at the Registry together with the prescribed fee. Before making an application, the applicant must have sent a notice to each director, secretary and member of the company stating that the applicant proposes to apply to the Financial Supervision Commission for a Declaration of Dissolution and that, unless written objection is made to the Commission within one month of the date the notice was posted, the Commission may dissolve the compaBefore making an application, the applicant must have sent a notice to each.

(v) It is recommended that prior clearance be obtained from Customs and Income tax to avoid delays. This is usually done by letter and is particularly important if the Company was VAT registered or was a Manx tax payer.

(vi) Note that all registry filings must be up to date and any changes in members since the last annual return must be advised on the application form.

(vii) Once the application has been accepted the Registrar will place a notice in the local paper, on its website and in a register at the public counter of the registry inviting objections; should no objection be receieved within 30 days then..

(viii) The Registrar will write to the Attorney General, Customs and Excise and the Income Tax Department to solicit any objections on their part.

(ix) Assuming no objections are received then the Registrar will send a letter to the Registered office of the Company stating that the Company is entitled to distribute its surplus assets and that it may do so.

(x) Once the assets have been distributed the Company should write to the Registrar confirming this.

(xi) Upon receipt of letter (x) then the Registrar will place a notice in the paper confirming that the Company has been dissolved. A letter is also sent to the registered office confirming the date of dissolution.

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