Why Is Your Company Limited?
The primary benefit of trading through a Limited Company is to limit the liability of the Directors/Shareholders*.
Liquidation is the legal process of ending the life of a company.
The Liquidator, once appointed by the shareholders, takes legal control of the company from the directors and deals with the winding up, at which point the directors are free to pursue new opportunities.
How to Liquidate
Our online system provides you with digital documents for electronic signature to evidence the three meetings required to complete the initial Liquidation process:
Only a Licensed Insolvency Practitioner is legally able to act as the Liquidator.
The cost of Liquidation depends on the complexity of the company’s business.
To get a super-competitive fixed fee quote click the sliders and add your contact details.
All information is confidential, and all quotes are without obligation.
We are Licenced Insolvency Practitioners, fully bonded, insured and established since 1999.
Call for advice on 0800 088 6767 or proceed with the online Liquidation process whenever you are ready.
*personal guarantees are not extinguished by Liquidation
The cost depends on what assets and liabilities your Company has.
Input your best estimates into our Quote Wizard above, complete the contact details form so we know you are genuine, and get an instant fixed price quote.
Once the account set-up details are completed, your ID docs have been uploaded and payment made, we will start the Liquidation process by emailing a link to E-sign the Engagement Documents.
When a company cannot pay its bills on time, as and when due, under the Insolvency Act 1986, technically your company is insolvent, or in a state of insolvency. This is known as cash flow insolvency.
Another test for insolvency is where the assets of the company are worth less than the liabilities, which is known as balance sheet insolvency.
It’s not rocket science. Cash is king, and cash flow problems are the most frequent cause of company insolvency.
A small business is a fragile entity, that doesn’t have a large capital base to sustain it through difficult times.
Once a company gets behind with it’s cash flow, it is in a catch 22 situation, where it cannot trade out of the position, because it needs additional cash to fund the trading – at which point, the directors are faced with the choice of injecting more funds, which can often be throwing good money after bad, or looking at formal insolvency options such as Liquidation.
Liquidation is the formal legal process to end the life of a Limited Company.
A company can be placed into voluntary liquidation by the directors and shareholders.
If the company is insolvent, then there is also a meeting of creditors.
The Company Liquidations online Liquidation system deals with all these formalities.
Liquidation is not the end of the company; it still exists, for the moment, in a protected state, while the Liquidator deals with the winding-up of its business affairs.
As soon as a Liquidator has been appointed, the Directors duties and obligations in respect of the company are effectively taken on by the Liquidator, and the Directors are in a position to make a fresh start, in the same line of business with a new Company, or they can exit the market and move onto new opportunities.
Once the Liquidation is complete, the company is dissolved, struck off the register at Companies House, and ceases to exist.
Most small company liquidations are routine and take around 6-8 months to complete. In practical terms, after the meeting of creditors, the directors will have no further involvement with the company, unless the Liquidator requires some assistance with the winding-up.
The cost of Liquidation is often uncertain as in - How long is a piece of string?
Generally speaking, the bigger the Company, the higher the fee is a rough rule of thumb.
Company Liquidations offers competitive Quotes starting from £2,450 including London Gazette adverts and insurance bond, rising in relation to the size of the company's debts.
The Fees charged must be approved by the creditors.
If the company has assets that can be sold, the Liquidator’s fee will be charged against those funds, as a cost of the Liquidation.
If the company has no assets, then the Liquidation costs are payable as a deposit into our client account. The Company Liquidations system will calculate the cost of Liquidation and if this is acceptable payment can be made via the online liquidation system or by card payment over the phone.
Directors and shareholders are not liable for the debts of the company, unless they have signed personal guarantees to the bank, suppliers, landlord, finance lease, etc.
To put things in perspective, operating as a sole-trader is the equivalent of being a director of a company and giving a personal guarantee to every party the company ever deals with.
Company’s are disposable by their very nature.
The Limited in Limited Company refers to the fact that the shareholders, directors, and staff of a company are not personally liable for the debts of the company.
Personal guarantees cannot be extinguished by liquidation, they are a personal matter and have to be dealt with outside the Liquidation process.
So the risk of personal financial implications for Directors has to be assessed.
Other than possible liabilities under personal guarantees, the main risk of negative impact to the Directors of a company placed into liquidation is if they are subject to disqualification proceedings by the Insolvency Service, if they consider there has been serious mismanagement of the company, that breached provisions of the Companies Act, Insolvency Act and Company Directors Disqualification Act.
You form a company online, so now you can Liquidate a company online too.
The Online Liquidation Process
1. Two Minute Assessment
Is Liquidation the right option for your company? Find out by slotting some "ball-park" figures into our Liquidation Wizard, it’s easy, quick, and calculates the overall financial position. Click to start.
2. Online Liquidation
Create an account on our secure, encrypted online system, and input the information we need to process the company into Liquidation.
Our system is linked to Companies House which speeds up the process.
Once you have added additional details about the Bank, HMRC, other creditors and any assets, and your account information has been verified by your account manager, we will issue the first set of documents for electronic signature.
You can log back in anytime if you need to. Click to start.
Discuss any queries with your dedicated account manager.
3. Appointing your Liquidator
This is done at meetings of the shareholders and creditors, so try not to worry about it, it will not be the ordeal you fear, rather it is likely to be an anti-climax!
Liquidation is an easy, simple legal process, where the Directors pass the company into the hands of a Liquidator, and they can make a fresh start in a new company, or go out and get a job if that makes more sense.
Is liquidating Online any different to the old way? Liquidating your company online follows the same procedure as liquidating offline. The advantage to you, though, is that liquidating online with Company Liquidations is cheaper, faster, easier and more convenient for you.
Generally speaking, it makes sense to speak to an advisor to talk through your company and business situation, especially for larger cases.
If you are concerned about:
Then give us a call to discuss the details of your company’s situation, to establish whether there are different options that you should consider, and to ensure Liquidation is the correct course before proceeding.
However, for straightforward cases, where your company is small, and has no assets to be dealt with, and you are already satisfied that Liquidation is the correct and responsible course of action, you can proceed to place your company into Liquidation now. Simply click the "Online Quote" button.
Company Liquidations offers an efficient, flexible and cost effective online system to liquidate small companies with the minimum of fuss and expense. By informing you about the Liquidation process, and working with you using our web based platform, we take the fear out of the unknown, and make the liquidation process understandable and to be frank, boring, a bit of an anti-climax. We see no need to make a drama out of a crisis, quite the reverse.
We understand that you are worried about taking this step, of placing your company into Liquidation, understandably so. But especially for smaller companies, there is usually nothing to worry about, our team of Liquidation staff take the company and it’s problems off your hands, and relieve you of your burden.
Liquidation is a routine procedure, and Company Liquidations’ secure online liquidation system ensures everything is done correctly according to the required legal routine. In practice, most Directors are amazed at how easy and painless the process is.
At the end of the day, if you are in any shape or form worried about any matter, please call to discuss in confidence, at any point in the process, we provide clients with on-going telephone support and local meetings where appropriate.
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