Professional Company LiquidatorsServing Kidlington Businesses

The cost varies depending on the size and complexity of the company. Typically, a simple creditors' voluntary liquidation may cost from around £4,000 to £6,000 plus VAT, but this can increase for larger or more complicated cases. You should request a fixed fee quote before engaging a professional. Always confirm what is included in the fee, such as statutory filings and meeting costs.

Any limited company that is insolvent, meaning it cannot pay its debts when they fall due, may be eligible for liquidation. This includes both trading and dormant companies. The decision to liquidate must be approved by shareholders and, in most cases, creditors. A licensed insolvency practitioner can confirm whether your company meets the criteria and advise on the correct procedure.

A straightforward creditors' voluntary liquidation typically takes around six to twelve months to complete, depending on the complexity of the company's affairs. This includes time for asset realisation, creditor claims, and final distribution. A compulsory liquidation may take longer due to court involvement. Your liquidator will provide a timeline based on your specific situation.

Creditors' voluntary liquidation is initiated by the directors and shareholders, who pass a resolution to wind up the company. Compulsory liquidation is forced by a creditor through a court order. In a voluntary liquidation, the company chooses the liquidator, whereas in a compulsory liquidation, the court appoints an official receiver or an insolvency practitioner. Most solvent and insolvent companies prefer the voluntary route.

Yes, a solvent company can be closed through a members' voluntary liquidation, which requires a declaration of solvency. This process is used to distribute surplus assets to shareholders and formally dissolve the company. It is not a form of insolvency, but it still requires the involvement of a licensed insolvency practitioner to act as liquidator and ensure compliance with the law.

Employees are made redundant when the company enters liquidation. They become preferential creditors for unpaid wages, holiday pay, and pension contributions. The liquidator will handle redundancy claims and may assist employees in claiming from the National Insurance Fund for certain statutory entitlements. Employees should receive a letter from the liquidator explaining their rights and the claims process.

In most cases, directors are not personally liable for company debts if they have acted properly and not given personal guarantees. However, if you have given a personal guarantee for a business loan or overdraft, you may be pursued by the lender. Additionally, if you have traded wrongfully or fraudulently, you could face personal liability. A professional can advise on your specific exposure.

Alternatives include a company voluntary arrangement (CVA), administration, or informal restructuring with creditors. A CVA allows the company to repay debts over a period while continuing to trade. Administration provides a moratorium from creditors, giving time to restructure or sell the business. A licensed insolvency practitioner can assess whether any of these options are viable for your company.

You should choose a practitioner who is licensed by a recognised professional body, such as the Insolvency Practitioners Association or the ICAEW. Look for someone with experience in your industry and who offers a clear fee structure. You can connect with a specialist listed on AccountingFirms, which ensures they are regulated and qualified to handle your case.

You will need to provide the company's financial records, including accounts, bank statements, tax returns, and details of debts and assets. You should also provide a list of creditors and any relevant contracts or leases. The liquidator will review these documents to understand the company's position and to prepare the statement of affairs. Early cooperation helps the process run smoothly.