What Does the Recent Change in Liquidation Rules Mean for You?
As of recent updates, the Israeli Companies Registrar no longer allows companies undergoing voluntary liquidation to request fee exemptions for unpaid registration fees. Previously, companies could apply for waivers for unpaid fees, including annual registration fees, for the years of inactivity before liquidation. This option has now been removed.
What Are the Implications of This Change?
Under the new rules, all outstanding fees, including unpaid annual registration fees, must be paid before a company can be officially liquidated. This change means that all fees owed to the Registrar must be settled in full before the liquidation process can proceed. Companies that have been inactive for a while may face accumulated fees, which will need to be cleared before liquidation can be finalized.
If you delay the liquidation process, these outstanding fees will remain and must be paid before your company can be fully closed.
What Do You Need to Do?
- Settle All Fees: Ensure that any outstanding fees owed to the Registrar, including annual registration fees, are paid before beginning the liquidation process.
- Confirm with Your Accountant: Have your accountant confirm that your company is inactive and ready for liquidation.
- Initiate Liquidation: Once all fees are cleared and your accountant has approved the closure, proceed with the official liquidation procedure.
Frequently Asked Questions (FAQ)
What fees must be paid during liquidation?
All unpaid fees to the Israeli Companies Registrar, including annual registration fees, must be cleared before initiating the liquidation process.
Can I get an exemption for unpaid fees during liquidation?
No. The recent change removes the option to request fee exemptions for unpaid registration fees during liquidation. All fees must be paid in full.
What happens if I don’t pay the fees before liquidation?
If the fees are not cleared, the liquidation process will be delayed. The fees will remain outstanding and must be paid before your company can officially close.
Conclusion
This change highlights the importance of settling all outstanding fees before starting the liquidation process. By ensuring all fees are cleared and confirming with your accountant, you can prevent unnecessary delays and complications in the closure of your Israeli company.
If you’re ready to close your Israeli company, don’t wait for fees to accumulate. Contact us today for guidance on the liquidation process and to ensure smooth and timely closure.
For more information on the liquidation process and the fees involved, visit the official Israeli government service page here.
