When a limited company is dissolved and its name removed from the register at Companies House, directors must ensure that creditors are paid within 12 months of closure. This is a fundamental part of being eligible for dissolution, as the process is not available to insolvent companies.
If my company is liquidated, am I personally liable for product guarantees and warranties? We offer advice on your liabilities during a liquidation process.
If you are unsure whether closing down your business is the right decision, leaving it dormant may be a better option. Each process has its own pros and cons.
Begbies Traynor advises directors, creditors and employees when a company goes into a formal insolvency process such as liquidation or administration.
Find out more about the establishment and running of a liquidation committee during the liquidation process.
The winding up process will be determined by the financial state of the business - is it solvent or insolvent? Liquidation can be voluntary or compulsory.
An overview of the company liquidation process highlighting the advantages and disadvantages of this corporate solution, by Begbies Traynor.
The application to strike-off a company from the Companies Register can be rejected if the company is found to have outstanding debts. In this case any debts must be settled before the company dissolution can be actioned, or if the company is insolvent then the liquidation of the company may be required.
Companies can cease trading for various reasons including a director’s retirement or ill health, ongoing financial problems, or simply because the company serves no further purpose.
Company strike off - also known as dissolution - and liquidation are two business closure processes with key differences. What do they mean for directors?
If you own and run several companies which make up part of a group, there may come a time when you want to close one or more of these while continuing to trade with the others. There are a variety of reasons behind this but it is often the case of wanting to close down an unprofitable arm of the company.
Liquidation is a process that closes a company down and removes it from Companies House; here we explain the processes for solvent and insolvent liquidation
Closing a company with a DS01 form means you voluntarily strike the business from the register at Companies House. It is inexpensive and relatively straightforward, but there are other closure options that may be more appropriate.
Company administration is a formal insolvency procedure that offers protection from creditor legal action via an initial eight-week moratorium period.