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Liquidation of companies

Liquidation of companies

Regardless of the reason why you make such a decision, there may always be a moment when you decide to close your limited company. It is possible that the company ceased to generate sufficiently high revenues, or you are no longer interested in continuing such work. We will help you choose the right way to solve the company.

 

Deciding to dissolve LTD we have two options. We may decide to sell shares in the company or close it. Both options are time-consuming, but the choice of one is necessary, because otherwise we will not avoid penalties for not submitting the documents required by law. Below, the closing process of LTD company is described in detail:

 

An application for the deletion of a company from the list of companies may be submitted by the company director, if there is only one, or the majority of company directors, if there are more. To close a LTD company, the following conditions must be met:

  • The company did not sell any goods or services within three months before submitting the application to close the company
  • The company has not changed its name within three months before submitting the application
  • the company cannot be subject to Insolvency proceedings,
  • the company cannot be a party to a settlement with creditors or shareholders.

 

The company must meet all of the above conditions. Otherwise, there are other options, but to fully delete the company from the Companies House register, some formalities must be completed. It is necessary to fill in the company deletion form, after which the copies should be sent to the following entities:

  • Shareholders (company members) and directors who are not signatories to the application,
  • Creditors,
  • Employees,
  • Managers.

 

In addition, it should be ensured that all employees receive remuneration as well as all insurance premiums and income tax are paid. After informing HMRC about the end of the business activity and deleting from the register, you should also submit a request to close the payroll.

Before deleting a company from the list, it is recommended to distribute its assets to shareholders; otherwise all assets will become the property of the Treasury (Crown). Since the company’s bank accounts become frozen, the deletion of LTD from the list of companies cannot be an alternative to the bankruptcy procedure..

 

After Companies House receives an application to delete LTD from the list of companies, the application is checked to prove its authenticity. The headquarters of LTD (Registered Office) is informed about this. A copy of the application is placed in the public documentation of LTD. The application is later published in the official journal (Gazette), where any interested party may oppose the closure of the company.

 

If the company fails to meet the above-mentioned criteria or becomes insolvent, the company’s deletion request is withdrawn, and the bankruptcy procedure is implemented. In this case, you can submit a DS02 application, which requires the signature of one director.