HBG Advisory always aims to make a company closure self-funded.
As licensed insolvency practitioners, HBG Advisory advises directors on how to close a limited company. Our robust, experienced, professional and unbiased advice guides directors on the cheapest way to close a company.
The team at HBG Advisory specialises in corporate insolvency.
HBG Advisory always advises on the best solution. Closing a limited company can be as straightforward as filing a form at companies house and paying a £10 fee.
Company directors who pay their employee’s final wages from their funds, rather than the company, remain one of the most common mistakes carried out by distressed directors. We face. If the failing company has no cash, the government pays unpaid wages and redundancies. HBG Advisory always advises and helps employees through this process.
Suppose your company is insolvent, then it is a company director’s legal obligation to cease trading and seek advice. Directors should approach licensed insolvency practitioners. They will explore options available from maintaining trading subject to the company’s viability using a company voluntary arrangement to closure using a creditor voluntary liquidation. If liquidation is the chosen route, you may close your company without cost to the director.
Insolvency Process to close your Limited Company Down
If your limited company is insolvent? Directors have two options.
You can close your company voluntarily through a Creditors Voluntary Liquidation CVL
By an involuntary method. A Compulsory Liquidation.
Should your limited company be solvent, then also two options exist:
If your company has assets less than £25,000 in value, dissolve your company.
However, if your company has assets over £25,000 once all debts are paid, then a Members Voluntary Liquidation (MVL) best suits and is more tax efficient.
Option 1 & 4 require the appointment of a licensed insolvency practitioner. A CVL can be free to directors if the company has assets to cover the liquidators costs. Failing which, the directors will cover the cost, and it can be anything from £4,000 plus disbursement, though it depends on the size of the liquidation.
An MVL can be a fixed cost and start at £995 plus disbursements. Please read Fixed Price MVL for further details.
Option 2 has a court appointed official receiver from the insolvency service to act as liquidator. The appointment requires no money from the directors to carry out this insolvency process.
Option 3 costs a £10 filing fee.
For further detailed information, please contact a member of the team at HBG Advisory on 0800 612 5448.
All fees quoted are subject to VAT at 17.5%.