How Long Does It Take to Liquidate a Company?
For a Solvent company (can pay its debts and has cash or assets remaining)
- Planning will be rewarded when winding up a company with assets
- The date of appointment of a liquidator will create a new accounting period for a company
- This may be different to your company’s usual accounting period
- Company accounts will need preparing up to the day before the appointment of a liquidator
- This will often rely on your accountant’s or bookkeeper’s availability
- HMRC will add interest on to any money to be paid to them which is paid after the appointment date
- Planning will, where possible, make sure the accounts are ready for the appointment date
- With shareholder approval the meeting to liquidate your company can be on “no” notice
- We can prepare the necessary papers to liquidate your company in a short period of time
- You can read about the Members’ Voluntary Liquidation process here
For an Insolvent company (can’t pay its debts and owes more than it owes)
- Speed can be very important for a company under financial pressure
- A lot of very important steps are taken before a liquidator is formally appointed to your company
- The Nominated Liquidator contacting those owed money by your company at the earliest stage is crucial
- Early contact will lift pressure off the company directors
- Explaining the process to those owed money will help them to understand what will happen
- Discussion with employees of the company will help them to understand any claims that they have
- Protecting any assets of the company will lead to a better return to those owed money
- By the time the company is formally liquidated anyone owed money will have been contacted
- You can read about the Creditors’ Voluntary Liquidation process here
The use of electronic signing of documents and virtual meetings (online/telephone) allow us to save time and expense on the legal parts of the process of winding up.
You’ll be glad to hear that our team of 20 are able to deliver the speed that you may need.