Liquidating cost

The company will stop doing business and employing people.The company won’t exist once it’s been removed (‘struck off’) from the companies register at Companies House.This is used, for instance, when a retail establishment wants to close stores.

If you are faced with the prospect of liquidating a limited company one of the most important considerations is the choice of liquidator since the cost of liquidation can vary considerably.Liquidation costs can vary due to complexity and company circumstances.Whether the company is deemed to be solvent or insolvent, a primary goal is to keep liquidation costs low to ensure optimum funds are available to meet creditor and/or member’s entitlements.Liquidation may either be compulsory (sometimes referred to as a creditors' liquidation) or voluntary (sometimes referred to as a shareholders' liquidation, although some voluntary liquidations are controlled by the creditors, see below).In addition, the term "liquidation" is sometimes used when a company wants to divest itself of some of its assets.