What is dissolution?
Dissoluton means the end of a company as a legal entity. A director can voluntarily dissolve their company on the pre-conditions that:
- The company hasn’t traded or sold off stock in the last 3 months
- The company hasn’t changed names in the last 3 months
- The company isn’t threatened with liquidation and has no agreements in place with creditors, such as a Company Voluntary Arrangement (CVA).
Dissolution is a useful solution for closing a company if it has served its purpose, is no longer active, and unlikely to be required in the future (often if the director chooses to retire.)
You can only dissolve a company if it is solvent.