Liquidation is a formal process for closing a limited company. It can help companies in financial distress pay creditors or allow solvent businesses to release assets.
Once the process is complete, the company is officially dissolved and removed from the Companies House register. The type of liquidation your company needs depends on whether it is solvent or insolvent.
If you’re unsure whether your company is solvent or insolvent, start with a free, no-obligation financial health check.
A company in financial distress can quickly become unmanageable. Don’t delay getting expert advice; we are here to help you understand your next steps.
A Members’ Voluntary Liquidation (MVL) is used to liquidate a solvent company. It is an option if your company is financially healthy but no longer needed, often due to a change in circumstances, such as retirement or returning to employment.
There are substantial tax benefits to an MVL, and we will help you by:
When a company is insolvent, meaning it cannot pay its debts, a Creditors’ Voluntary Liquidation (CVL) can be used to voluntarily close it down.
During a CVL, our team will help by:
A company may face compulsory liquidation when debts are unpaid and a creditor issues a winding-up petition. Directors of the company do not voluntarily liquidate with this process, the closure is ordered by the court.
Immediate advice is crucial, as once the court is involved:
Need to speak to a liquidation expert today? A company in financial distress can quickly become unmanageable, don’t delay getting expert advice. We are here to help you understand your next steps. Contact us today.
✓ Protect yourself legally
By liquidating voluntarily, directors of insolvent companies reduce the risk of wrongful trading accusations, which could lead to personal financial liability.
✓ Stop creditor pressure
Liquidating stops creditors’ demands, and you can hand over all communications to the liquidator. We’ll deal with the stress so you don’t have to.
✓ Get close and take control of your future
If your company is solvent, liquidation helps you close the company properly, allowing you to access your assets and plan for the next chapter.
Liquidation costs vary depending on factors like company size, asset value, and the complexity of the process. During your consultation, we’ll provide a clear breakdown of costs. Get started by getting your free liquidation quote.
If you wish to liquidate your limited company, you will need to seek liquidation advice from a licenced Insolvency Practitioner (IP). Whether your company is solvent or insolvent, deciding to close down your company is a big decision and requires expert guidance.
Taking liquidation advice from an experienced liquidation expert will allow you to understand your options and which steps you need to take to help protect your business, yourself and your creditors.
At The Liquidation Centre we offer a free no-obligation financial health check to help you understand your company’s current position and what liquidation options are open to you.
Ready to speak to one of our in-house liquidation experts? Contact us today.
Whether it’s an MVL or CVL, liquidation services in the UK must be handled by a licensed Insolvency Practitioner. They’ll oversee the entire process, ensuring assets are dealt with appropriately and creditors are treated fairly.
For solvent companies, the remaining funds are shared among directors or shareholders. For insolvent companies, the practitioner ensures proper distribution to creditors.