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Closing and liquidating a business

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If the time has come and you need to close your company because of debt or a dire financial situation, liquidation is the process you will probably have heard of, and are most likely considering.

We explain how to liquidate a company with no money below. Before you do, download our eBook, Closing and liquidating a business written for limited company directors, for free now. Find out everything you need to know about closing a limited company.

The Bankruptcy Option

To liquidate a limited company literally means to sell off any assets things the company owns, like stock, computers, desks, buildings etc. In this scenario the liquidating of the assets would also pay for the liquidators Insolvency Practitioner fees.

This is useful because the cost to liquidate a company can often run into the thousands of pounds.

Dissolution

Closing and liquidating a business In some cases the company director may also be able to claim for redundancyprovided they have been on the PAYE scheme. However, in some Closing and liquidating a business there might not be enough, or indeed any, assets to sell and therefore no money to pay for an Insolvency Practitioner, if this Closing and liquidating a business the case then liquidation is not possible and you have a couple of choices which will achieve the same outcome:.

If the company does have debts but no assets then there is another route that can be used, which effectively clears any debts and allows for the company to be closed, this is called Administrative Dissolution.

Whe you decide to close...

It has the same effect as a liquidation but usually costs far less. The Administrative Closing and liquidating a business process is Closing and liquidating a business on the benefits of using Sections to of the Companies Act formerly Section of The Companies Act which Closing and liquidating a business available to limited companies.

If you follow this route you should ensure that all creditors are informed and the financial Closing and liquidating a business explained to them. You should also invite the creditors to petition for the winding up of a company. You will also need to make sure that you inform all shareholders, directors, employees and trustees of any pension fund.

The main downside is that the process has to be carried out correctly with paperwork etc. Also, it is especially important to be careful about your actions and accounts when you realise your company is trading whilst insolvent. For example, if you attempt to sell off all assets in an independent sale for a price that is far below market value you could Closing and liquidating a business accused of wrongful trading.

See if your company qualifies for Administrative Dissolution by taking our free dissolution test now. Call us on today. Closing and liquidating a business to liquidate a company that has no money or assets. But a liquidation can cost a lot of money, sometimes thousands of pounds. However, in some cases there might not be enough, or indeed any, assets to sell and therefore no money to pay for an Insolvency Practitioner, if this is the case then liquidation is not possible and you have a couple of choices which will achieve the same outcome: If your company does have Closing and Closing and liquidating a business a business If the company does have debts but no assets then there is another route Closing and liquidating a business can be used, which effectively clears any debts and allows for the company to be closed, this is called Administrative Dissolution.

Does your company qualify for Dissolution? Ben Westoby Senior Client Manager. Can I be a company director after a liquidation? Who gets paid first when a company is liquidated?

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