You can choose to liquidate your limited company (also called ‘winding up’ a company).
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.
When you liquidate a company, its assets are used to pay off its debts. Any money left goes to shareholders. You’ll need a validation order to access your company bank account.
If that money hasn’t been shared between the shareholders by the time the company is removed from the register, it will go to the state.
You’ll need to restore your company to claim back money after it’s been removed from the register.
There are 2 kinds of voluntary liquidation:
- creditors’ voluntary liquidation - you and your shareholders choose to liquidate your company because it can’t pay its debts
- members’ voluntary liquidation - your company can pay its debts but you want to close it
Your company may be forced into compulsory liquidation if it can’t pay its debts.