What is company liquidation?
Company liquidation is the formal process of shutting down a limited company. It can be voluntary or compulsory, and your business might be solvent (able to pay what it owes) or insolvent (struggling with debt).
Company Liquidation
- Specialists in solvent and insolvent liquidations
- Clear and simple advice
- Fully licensed Insolvency Practitioners with 20+ years’ experience
The different types of liquidation
There are several ways to liquidate a company in the UK and the right option for your company will depend on its circumstances.
Whether your company is solvent or insolvent, we can complete a free, no-obligation financial health check to help clarify your situation and next steps. If you have any concerns that your company may be insolvent, it’s important that you get advice as soon as possible.
The Liquidation Centre have a team of fully licensed Insolvency Practitioners who can advise you on your situation and the available next steps.
Creditors’ Voluntary Liquidation (CVL).
If your company can’t pay its debts, a CVL helps you close down in the right way.
- A licensed Insolvency Practitioner handles everything.
- Assets are valued and sold.
- The money goes to creditors in the correct order.
- The company is officially closed and removed from Companies House.
Don’t wait until things get worse, acting early can help protect you and reduce creditor pressure.
Members’ Voluntary Liquidation (MVL).
If your company is still financially healthy and you’re ready to close it (maybe to retire or move on), an MVL could be the right route.
An MVL might be beneficial if:
- The business can pay all its debts.
- You’ve traded for over two years.
- You have more than £25,000 in assets.
It’s often more tax-efficient than simply withdrawing money or dissolving the company.
Compulsory Liquidation.
Compulsory liquidation happens when a creditor (often HMRC) petitions the court to wind up your company.
- Your accounts will be frozen.
- The court appoints an Official Receiver to take over.
- You risk losing control if you don’t act quickly.
If you’ve had a winding-up petition, don’t wait, we can help you understand your options and speak to creditors on your behalf.
Discuss Compulsory Liquidation
How do I liquidate my company?
To liquidate your company, you need to nominate a licensed Insolvency Practitioner to become the liquidator, as liquidations cannot proceed without one.
MVLs and CVLs, despite being voluntary liquidation options, still need to be processed by an Insolvency Practitioner as you cannot legally carry out the process yourself.
Company liquidation costs can vary depending on the company’s circumstances, the liquidation type, and the amount of work involved in carrying out the liquidation.
Can I run another business after a liquidation?
Yes, unless you are disqualified from being a director, you can start a new business. Be mindful that the new company cannot have the same or a similar name to the one you’ve liquidated except in certain circumstances where the legal process to do so has been followed.