Dissolving your company, or applying to have it struck off Companies House register can be a straightforward and cost effective way of closing a business that you no longer require. But it can’t be used for every business. This quick list of pros and cons will help you decide whether company dissolution is a suitable option for your business.
The key factor that should determine whether you should dissolve your company or liquidate it, is your level of debt. If you can pay off all your creditors prior to ceasing trading and dissolution, and you have no material assets to distribute, then this option may well be best for you. If however, you cannot meet your financial obligations, then dissolution is not an option for your company. In such cases, you may need to consider voluntary liquidation.
You are not required to use an an insolvency practice when dissolving your company, although many business owners prefer us to oversee the process for them. We charge a flat fee of £900 plus VAT to do this.
Feel free to contact one of our business rescue experts for more information.