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 will not 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 has not 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 3 types of liquidation:
- creditors’ voluntary liquidation - your company cannot pay its debts and you involve your creditors when you liquidate it
- compulsory liquidation - your company cannot pay its debts and you apply to the courts to liquidate it
- members’ voluntary liquidation - your company can pay its debts but you want to close it
Your company may be forced into liquidation if it cannot pay its debts.