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