The process of dissolving a company can also be carried out if the firm is no longer active or trading and is unlikely to be needed in the future. Dissolving the business can be initiated by completing a DS01 form. A company can be dissolved if it conforms to a number of rules, including:. Although the dissolution of a business is usually voluntary, it can be struck off by Companies House for non-compliance of its rules. Examples of this include:. It is important to note that the process of dissolving a company is an informal one, so should only be taken if you have absolutely no outstanding debts.
This is because an outstanding creditor will have the right to pursue you for the money they are owed, even after the dissolution has taken place. Your creditors will be able to petition for your business to be restored to the Companies House register so they can begin debt recovery action against your firm. In reality, this is only likely to happen if the creditor is owed a significant amount of money, since the costs of restoring a company can be quite expensive.
Once the process of dissolving a company has begun, the request to close down the firm will be published in the local gazette. If there are no objections to this, the enterprise will formally be struck off the register after two months have passed. A second notice will then be published in the Gazette to confirm that the business has officially been dissolved.
The firm will then remain in a dissolved state on the Companies House register for a period of 20 years, until it is then archived and will not appear on the register. The process of liquidating a business is usually carried out when there are unpaid debts and liabilities to creditors, and the firm is not in a financial position to satisfy them. What does liquidation mean for company directors? What happens to the VAT if I liquidate my company?
Show more How much are you entitled to claim? Try Our Calculator Today. Considering Director Redundancy? Suggested Reading. May I take this opportunity to thank you and your team for all your professional help in securing for myself and my wife, redundancy pay.
I would have no hesitation in recommending RCUK to assist them. Tom Harrison Managing Director of a construction company. Company Name. Your Message. Send Message. Your message has been sent. Our site uses cookies to improve your experience. Liquidations can be a hard process to go through, but we hope that we can make it easier for you.
Contact us today if you have further questions about dissolutions and liquidations, or if you are interested in liquidating your items with us! Skip to content. What is the Difference Between a Dissolution and a Liquidation? The different processes of closing a business. What is a Dissolution? So What is a Liquidation? All Rights Reserved.
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