The cost for closing a limited company depends on how the process is going to be conducted.

This article will explore the costs for a solvent liquidation, an insolvent liquidation, and the simpler process of striking off.

All three are legitimate ways to close a limited company.

Costs of Closing a Solvent Limited Company

Solvent Liquidation, also known as Members Voluntary Liquidation, costs approximately £2,000 plus VAT.

These costs will be spent:

  • Submitting the necessary paperwork to Companies House
  • Making sure all creditors are paid what they are owed.
  • Checking for outstanding liabilities the company may have
  • Distributing money to shareholders
  • Liasing with HMRC to gain clearance for strike off

Costs of Closing a Insolvent Limited Company

Liquidations costs between £3000 to £6000 for most businesses. Larger companies, with a greater asset value, should expect to pay a higher cost.

  • Communicating with Creditors and processing their claims
  • Collecting money owed to the company
  • Dealing with employee redundancies
  • Investigating the reasons for the insolvency and filing a report
  • Selling any company assets for market value
  • Paying credits from realised assets
  • Submitting paperwork to HM & Revenue, Companies House
  • Striking off the company from the register

Costs of Closing a Company Via Strike Off

Assuming your company qualifies for strike off (full criteria here) then the cost is tiny: just £10 to process the application via a DS01 form at Companies House.