There are two main routes to closing a company, applying to get the company struck off the Companies Register or liquidation. Directors normally only strike off 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 is normally used to either deal with the company’s debts or extract the company’s assets in the most tax-effective way.

An MVL is a process by which a licensed insolvency practitioner closes a solvent limited company. 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.

A CVL is the process by which a licensed insolvency practitioner closes an insolvent limited company. Through this process, any assets of the company are “liquidated” and used to pay off some of the debts held by the company while the company is closed. Any company debts that can’t be paid back are written off.

An insolvency practitioner (IP) is an individual who is licensed to carry out a company liquidation. There are strict rules to follow when entering into an MVL or CVL, which legally requires an IP to be appointed.

Although liquidations cost money, for solvent companies, the money saved through paying less tax will far outweigh the liquidation fee.

For insolvent companies, a liquidator offers the peace of mind that the debts held by a company will be dealt with, as will the directors’ legal obligations. Company directors may also be able to claim redundancy, which is dealt with as part of our fee.

How long it takes to close down a company depends on the type of liquidation process, as well as the specifics of the particular case.

As soon as we have all the information we need from you (some of which is likely to be supplied by your accountant), we will move as quickly as possible to get the process dealt with.