My business has been gradually accumulating debt for a while now, but in the last year I’ve been unable to turn a profit at all. It is becoming a financial burden to keep investing in this when I know that realistically my effort will not be rewarded. The business is registered in the UK as a limited company. How would I go about formally closing the company with the least hassle?
If you have made your mind up that it is time to wind up your limited company, the first thing to consider is whether there are any other directors, members or shareholders who need to be a part of the decision making process. Without a resolution to wind up/dissolve a company, you cannot proceed. Also, it needs to be taken into consideration whether your company is solvent or insolvent. The process for closing a company in the UK depends on whether or not there are any outstanding debts which you have no hope of paying.
There is a process for winding up a limited company in the UK called Members Voluntary Liquidation. This is appropiate if you believe that the company's debts can be paid within a timeframe of 12 months after winding up begins, then this is the best solution. However, if your company is insolvent without hope of meeting that deadline, you would need to pursue a Creditors Voluntary Liquidation.
Once all assets, in either case, have been liquidated, the company can be struck from the register at Companies House. We would recommend that you speak with a licensed insolvency practitioner to discuss your financial circumstances before you do anything. You want to be sure you proceed in the proper manner so as not to slow down the process. You may believe your company is solvent, but if there is even the remotest possibility that it will not be possible to pay all creditors, you would need to switch midstream from an MVL to a CVL.
We are here seven days a week and it only takes a quick phone call to set up a free consultation. Closing a company in the UK is not what we like to see, but we can help you successfully cease trading and strike your company off the register. You are looking for the most effortless way to accomplish this and we can help.
13th September 2016 The frequency with which HM Revenue & Customs (HMRC) is stepping in to seize assets of companies who are heavily in debt increased sharply over the past year.
6th September 2016 The Restaurant Group, which owns hundreds of branded eateries around the UK, is to close or sell 33 of its outlets after a review of its nationwide operating strategy.
5th September 2016 A television company has been entered into administration after succumbing to financial pressures over the past several months.
24th August 2016 The four largest supermarket chains in the UK all saw their sales levels fall on a year-to-year comparative basis during the recent summer months.
4th August 2016 Activity within the UK’s service sector contracted during July after having expanded consistently every month over the course of the past three and a half years.
Every day we help companies just like yours turn things around against seemingly impossible odds, regardless of your situation we can help. Find your nearest office today.