How To Close A Business
One of the most difficult decisions can be to close a business. Here's how you do it.
If you have made the decision to close your business, you must finalise with the relevant authorities which include the Companies Office of Jamaica (COJ), Tax Administration Jamaica (TAJ), National Housing Trust (NHT), National Insurance Scheme (NIS) and can include other industry-specific agencies. ENSURE YOU DO YOUR RESEARCH BEFORE YOU PROCEED. THERE ARE RESOURCES AVAILABLE TO ASSIST SUCH AS THE TAX HELP LINE AT THE TAJ AND CUSTOMER SERVICE AT COJ.
REMOVAL BY REQUEST – From the COJ website A company, which has ceased trading and has no assets or liabilities, may request removal under the Companies Act. In order to do this, the company will be required to do the following:
File any outstanding documents (Annual Returns, notices etc., to bring the company’s filings up to date – see next page re TAJ);
Submit a request for removal in writing to the Companies Office of Jamaica. This letter must be signed by all or a majority of the directors or an Authorized Official of the company and must expressly state that the company wishes to be removed from the register of companies;
Submit a letter from an Auditor/Chartered Accountant certifying that the Company has neither assets nor liabilities.
The applicable fee for the removal (in addition to the fees for filing the outstanding documents) consists of the processing fee for the removal, and a charge for advertising the removal in the newspaper. Companies Office of Jamaica Fee Schedule - https://www.orcjamaica.com/Fees.aspx
Closure of Registration of Business – BN6 Form
A company which still has assets or liabilities must proceed by way of Liquidation, selling assets to pay off liabilities.
The following must be submitted to Tax Administration Jamaica (TAJ):
Certificate of closure from the COJ, if available.
Letter requesting deactivation of the company’s TRN
Companies with employees will also be required to submit the following final forms to the tax office with their accompanying payments:
Closure notices must also be sent to the National Insurance Scheme (NIS) and the National Housing Trust (NHT).
Ensure you maintain all records and receipts at least until the business has officially been struck from the records of COJ and TAJ.
Note that you will become personally liable for any non-compliance-related interest and penalties that can accrue if the business is not appropriately and formally ‘closed’.