Ways to liquidate a limited company

Source: Companies House | | 03/10/2018

There are a number of reasons why a limited company may be no longer required and can be shut down. This may be because the limited company structure:

  • no longer suits the needs of its owners,
  • the business is no longer active, or
  • the company is insolvent.

The agreement of all the company’s directors and shareholders to close down the company will be required.

The method for winding up or liquidating a limited company depends on whether it is solvent or insolvent. If the company is solvent, you can apply to get the company struck off the Register of Companies or start a members’ voluntary liquidation. The former method is usually the cheapest. You should also make sure that no business assets are left as any funds left in business bank accounts could revert to the Crown.

Where a company is insolvent, the creditors’ voluntary liquidation should be used. There are also special rules where the company has no director, for example if the sole director has passed away. A compulsory liquidation will be put in place where a company cannot pay its debts and an application is made to the courts to liquidate.



Contact Us

8-10 Queen Street
Seaton
Devon
EX12 2NY
Tel: 01297 624188

Also in Exeter

13 West Street
Exeter
Devon
EX1 1BB
Tel: 01392 823999

 

Cookie Policy

Latest News

New Stamp Duty surcharge announced
20/02/2019 - More...
A new consultation has been launched by HM Treasury together with HMRC seeking views on the design of a new 1% Stamp

Edinburgh makes a case for UK’s first tourist tax
20/02/2019 - More...
The City of Edinburgh Council is seeking permission to introduce a tourist tax. After an extensive consultation, the

Did you get your Brexit update letter from HMRC?
20/02/2019 - More...
HMRC has now written to over 145,000 VAT-registered businesses across the UK with a Brexit update. The letters explain

News Search


Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

» Sign up for the newsletter
» Login