The simplest way to Dissolve a company is to pick up the phone and ask us to do it for you!
So, how do we Dissolve a company? There isn’t a formal approach as such. However, the Tax Office internal guidance does expect certain things to have been covered (and they will want to see this documented), which ties in with the process we have been using for years.
You really need to decide if you are going to do this yourself, or use an agent. An agent will do all the hard work for you and avoid any problems, something you may struggle with. We have developed our strategy for Dissolution with the benefit of 5 years worth of experience, this removes any problems for our clients.
Crystalise your business assets
This is just accountants speak for getting the people who owe you to pay, and sell any other assets you have.
Your company assets need to be realised. For many companies this may be just a few debtors owing money, or maybe some assets to sell.
If you are going to buy the company assets yourself – please make sure you do it at the right value. If you undersell an item to yourself you are leaving yourself open to problems.
By using an agent this will be fairly straightforward, the agent will arrange for assets to be sold and debts collected.
Talk to you creditors
Once the debts have been mostly collected and the assets sold, this is then offered to the creditors of the company as full and final settlement of the outstanding debt.
Petition Companies House
With the creditors agreement, Companies House is then petitioned for the Dissolution of the company. A copy of the petition will also be sent to creditors.
If everything has been done correctly, you now just to wait for the statuary 3 months before the company is officially Dissolved.
The 3 months doesn’t mean that you cannot set up a new business anywhere in that time. In fact it is easier for Directors to set up a new business having Dissolved their last company than it is if they had Liquidated it!