Last Updated: 25/10/2024
In short
Usually a creditor like HM Revenue & Customs will petition to wind the company up and it will then be put into liquidation. The are still alternatives though so please get in touch with one of our experts on 0800 331 7417.
In more detail
There are three main choices to close down an insolvency company:
- You pay for a liquidation. You will need a Licensed Insolvency Practitioner like us to do this.
- You wait for someone else to issue a winding up petition although you may have to wait three to six months for this. The most common creditor to wind up a company is HMRC.
- You use form DS01 available from Companies House. It is not actually a liquidation but a good cheap way to strike off a company. IT only costs £8 to do it online but you have to be careful through and follow the rules on the form.
So why do directors pay for a company to be liquidated?
- It's quicker
- It gets creditors offer your back as they have to deal with the liquidator
- It is the best way to deal with any assets lefts
- It helps employees make their redundancy claims quickly from the government
- It stops the need to file accounts, VAT and PAYE information