Liquidate your limited company
Apply directly to the court
A director can ask a court to order the company to stop trading and be liquidated (‘wound up’).
This is known as ‘compulsory liquidation’.
You need to show the court that:
- the company cannot pay its debts of £750 or more
- 75% (by value of shares) of shareholders agree that the court can wind up the company
Your company can be based anywhere but must carry out most of its business in England, Scotland and Wales.
How to apply
Fill in a ‘winding-up petition’ (form Comp 1) and send it to the court with:
- form Comp 2 confirming the details of your petition
- the winding-up resolution from the shareholders
Where you send the petition depends on how much ‘paid-up share capital’ your company has. You can find this on the Companies House register.
Your paid-up share capital is £120,000 or more
Submit the petition online. It’ll go to the High Court.
Your paid-up share capital is under £120,000
Find your nearest court that deals with bankruptcy.
Submit the petition online if it’s one of these courts:
- Admiralty and Commercial Court
- Chancery Division
- Companies Court
- High Court (including Bankruptcy Court)
- London Mercantile Court
- Rolls Building
If it was another court you’ll need to submit the petition by post.
Fees
It costs:
- £2,600 to submit the petition
- £280 for the court hearing
After you apply
You’ll get a date for the hearing if the court accepts your petition.
Before the court hearing, you must:
- give (‘serve’) a copy of the petition to your company - fill in a certificate of service to let the court know you’ve done this
- put an advert in The Gazette at least 7 days before the hearing
- send a copy of the advert and the certificate of service to the court
The court hearing
You or your solicitor must be at the court hearing. You do not have to give any evidence.
If the court gives a winding-up order, the court will put an official receiver in charge of the liquidation. They’ll start liquidating your company. A copy of the winding-up order will be sent to your company’s registered office.