The way you must close your limited company depends on whether it can pay its bills or not.
Your company can pay its bills (‘solvent’)
You can either:
- apply to get the company struck off the Register of Companies
- start a members’ voluntary liquidation
Striking off the company is often the cheapest way to close it.
Your company can’t pay its bills (‘insolvent’)
You must use the creditors’ voluntary liquidation process.
When your company is insolvent, all directors have a legal responsibility to protect creditors’ interests ahead of the company’s.
Your company may be able to avoid liquidation by applying for a Company Voluntary Arrangement.
Your company might be forced into compulsory liquidation if you don’t pay creditors.
How to close a limited company – strike off, dissolution, voluntary liquidation