Liquidating a company and starting again

Can liquidating a company be too much? Can I start a new company after liquidation? What are the options for liquidating a company? Can you be a director of a liquidated company?

In these situations, the directors of the company are protected from the personal liabilities of the company debts as the insolvency process begins.

This section applies to a person where a company (the liquidating company ) has gone into insolvent liquidation on or after the appointed day and he was a director or shadow director of the company at any time in the period of months ending with the day before it went into liquidation. What directors need to know about liquidating a company. If you’ve reached the stage where liquidating your company seems to be the only remaining option – maybe creditor pressure is becoming too much, or the company ’s debts are simply not manageable - it may be reassuring to know that you can start again as a director with a new company. In the event of liquidating a company with debts and establishing a new company , there are a few restrictions which should be taken into consideration.

This is to prevent company directors starting a new company in order to escape debt and the consequences. The company will not exist once it’s been removed (‘struck off’) from the companies register at Companies House. When you liquidate a company , its assets are used to pay off its debts.

Company liquidation may seem bleak, but for some directors, the liquidation of a company offers new opportunities for business and the chance to start a new enterprise.

This article will outline the process for starting a new company as a director, if your previous business went into liquidation. Liquidation legally ends or ‘winds up’ a limited company or partnership. There is a different guide if you want to wind-up a partnership). If they dissolve the companyy and my client buy it back in months time can get the FCA license transferred to the new company or has to apply again ? If a creditor is owed £7or more by the debtor company , they may be eligible to petition the court for its winding-up. This is the process by which an insolvent company is liquidated once creditor pressure becomes too much to deal with and the directors realise there is very little possibility of the company being able to recover financially.

At the start of the process, a resolution is passed to wind up the company. This has to be voted in favour by a minimum. The benefit being that there was a tax-free allowance of £16per shareholder and the balance could be taxed at just , instead of the.

While a company is placed into voluntary liquidation by its directors, in the case of compulsory liquidation, it is a creditor which forces a company into this situation. No doubt you will make a secret copy of the client base and attempt to use. A director can propose a company stops trading and be liquidated (‘wound up’) if:. Appoint an authorised insolvency practitioner as liquidator to take charge of liquidating the company.

Again , you should speak to an accountant to get advice on your personal situation. Whilst winding up a limited company means the end of the legal entity that is the company this is no reason to think that the actual business of the firm needs to stop. In fact, it is a more common occurrence than people think for a business to close but for the trading style, brand and assets of the firm to continue.

Directors can choose to open up a new or ‘Phoenix’ company to carry on.

It really is the end of the company , but the business may survive if a phoenix is organised. See how limited company liquidation works, be it compulsory or voluntary, and the role of a director and a liquidator. As a general rule, liquidating a company is best carried out by legal professional (e.g. a solicitor). Even so, you can wind up a limited company yourself providing you follow the correct processes. A decision procedure, usually a virtual meeting, is subsequently held for creditors to confirm the Liquidator.

Thread Status: Not open for further replies. Linny UKBF Newcomer Free Member. Own an small ltd well established company which due to its debts is no. The Reuse of a Liquidated Company Name: Section 216.

If you’re the director of a business and you intend to place your company into liquidation, it’s important you consider your plans after the company has been liquidated. If you want to set up a new limited company and hope to use the same or similar liquidated company name, then beware. A company ’s directors will decide that the best option is to put the company into CVL and they will hold a board meeting to agree the course of action. The directors would then engage an insolvency practitioner to call meetings of members (shareholders) and creditors to formally place the company into CVL.

For example, a higher rate taxpaying shareholder receiving £100on the liquidation of his company would pay £35(3 ) if the anti-avoidance applies, whereas CGT would be just £10() if entrepreneurs relief is available. Disposal of your company assets. The process of liquidating your business assets seeks to turn these assets into cash in order to pay off as many of your business’s creditors as possible.

Your business assets include such items as office IT equipment, furniture, tools and any other equipment that your company owns outright. When liquidating a limited company there are several factors to consider and it’s a good idea to be aware of its merits before you proceed. Companies may either choose to liquidate voluntarily, or be forced into compulsory liquidation from creditor pressure, or financial circumstance. One is informal, has very little administration attached to it, can be done by a company director and costs about £10. This procedure is known as striking a company off the register and dissolving it ( company dissolution).

The other has much more formal.