How To Close A Company
Find the best way to close your company
Closing a UK Business
Closing a limited company in the UK depends on its financial status. Solvent? Got Debts? Trading? Inactive?
Closing a Limited Company
We'll explain the details and recommend the right approach
Creditors Voluntary Liquidation
A Creditors’ Voluntary Liquidation (CVL) is the insolvency process where a company’s directors voluntarily wind up the business because it can no longer pay its debts.
A CVL allows directors to take control of the process and appoint an insolvency practitioner of their choice.
Members Voluntary Liquidation
A Members’ Voluntary Liquidation (MVL) is used to close a solvent company. It is initiated when a company can pay all its debts but the shareholders choose to close it.
An MVL is often tax‑efficient, as distributions may qualify for Business Asset Disposal Relief.
Compulsory Liquidation
A Winding‑Up Petition can lead to a Winding Up Order, forcing a company into Compulsory Liquidation .
Dissolution
If your company is solvent with assets under £25,000, Company Dissolution is usually suitable and inexpensive.
Directors Redundancy Payments
Outstanding wages and redundancy may be payable by the National Insurance Fund. See the Directors Redundancy Calculator .
Can I simply dissolve my business?
Dissolution is often a cheaper way to close a company compared to liquidation
When Dissolution is Suitable?
There must be no outstanding debts or liabilities, no ongoing legal proceedings, and unanimous agreement among all directors and shareholders.
When Dissolution is Not Suitable?
For solvent companies with shareholder distributions over £25,000, a Members’ Voluntary Liquidation is preferable for tax reasons. For insolvent companies with creditors or HMRC likely to object, a Creditors’ Voluntary Liquidation is needed.
Why Use A Professional Service?
It's vital all matters are dealt with correctly – otherwise it could be costly, for example:
- Post‑dissolution, any assets of a dissolved company are frozen, and any credit balance belongs to the Crown.
- A company can be restored by court order for reasons such as outstanding debt or HMRC liability.
Dissolving Your Company With Us
We can be as hands‑on as you require, handling creditors, Companies House, and HMRC.
The strike‑off process addresses outstanding company assets, debts, and any other unresolved issues. Upon completion, your company is removed from the register, and your duties as a director come to an end.
Talk To The Experts
"Whether you have chosen to close your company and wind-up its affairs or you have creditors threatening to take action against it, we can provide guidance and reassurance on the best way forward"
Jon Rudd
Operations Director
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