Your limited company closure questions answered
How do I close my limited company?
Usually, there are two main routes to closing a company, dissolution or liquidation. Directors normally only dissolve a company if it has little to no assets, no debt, and has ceased trading. If this isn’t the case, then one form of liquidation must be followed to either deal with the company’s debts or extract the company’s assets in the most tax-effective way possible.
What is a Members?
An MVL is a process by which a licensed insolvency practitioner closes a solvent limited company – i.e. one that has no debts which it can’t pay back. Through this process, the company’s assets can be “liquidated” and passed to the shareholders in a tax-efficient manner while the company is closed.
What is a Creditors?
A CVL is the process by which a licensed insolvency practitioner closes an insolvent limited company – i.e. one that has debts it can’t pay back. Through this process, any assets of the company are “liquidated” and used to pay off as much of the company’s debts as possible, while the company is closed.
What is an insolvency practitioner?
An insolvency practitioner is an individual who is licensed to carry out a company closure with the liquidation process. There are strict rules to follow when entering into an MVL or CVL, and the law requires that an insolvency practitioner is appointed.
What do I get for my fee?
While liquidations are not free, we make them as affordable as possible. For solvent companies, the money saved through paying less tax will far outweigh the liquidation fee.
For insolvent companies, a liquidation offers the peace of mind that the company’s debt and the directors’ legal obligations will all be dealt with correctly.
How long does a company closure take?
The length of time it takes to close a company depends on the type of liquidation process and the speed at which the information is supplied to the insolvency practitioner. We pride ourselves on working with directors and their accountants to get the process done as promptly as possible.