How do I Liquidate a Solvent Company?
- Confirm your limited company has net assets over £25,000. Below this amount it may be possible, to strike off (dissolve) the company as a cheaper alternative.
- Call a Shareholders Meeting to vote on the winding up of the company.
- Engage the services of an Insolvency Practitioner (liquidator) You cannot liquidate your company without a licensed IP.
- The liquidator will assist with the preparation of a Declaration of Solvency. This is an official document, signed by the company directors, stating that the company can repay any debts (including interest) within a 12-month period. It includes a full breakdown of assets and liabilities and must be made before a solicitor of commissioner of oaths, before being filed at Companies House.
- The IP will liquidate any company assets and deliver the proceeds to the company members.
What if I Can’t Afford the Cost of the Liquidator?
How Long do Companies Stay in Liquidation?
Appointing a liquidator (insolvency practitioner) takes just one or two weeks. Approving the liquidation itself takes approximately 3 months, but since the IP’s job is to get the best return for creditors it takes significantly longer to assess the company situation, value and sell any assets, and distribute the proceeds accordingly.