Doing business today is easier than ever. Opening a company takes just a few days and there are many ways in which you can reach potential customers. However, the fact is that not all the companies are successful. Despite the fact that the economic times in the UK are favorable, there are situations when businesses are failing. In case you are a company owner and you are interested in reading more about closing a company UK edition, you have come to the right place. Keep in mind that you are not the first or the last person doing this, so there is no need to feel disappointed or panicked.
First of all, in case your company is not solvent, you have an obligation, as a company director, to close your company not create additional debts. The only exception is cases when company owners have a well-developed plan that promises positive results after a short period of time. In case you are unable to create such plan and it seems that your company can’t get up on its feet again, then you have to liquidate the company. In order to do this, you can rely on your knowledge and energy or you can use professional advice on how to close the business in the best possible way.
In most cases, people choose to use the help of insolvency experts. These professionals will schedule a meeting of creditors and act on your behalf. They will create a statement of affairs, organize and hold a meeting and deal with all the paperwork that is involved in this process. The main objective is to ensure that every creditor is informed about the situation and let them know how they can become part of any dividend.
If you choose to use professional help, you should be prepared to pay a certain fee. This fee is usually around a few thousand pounds. Before you hire a professional of this kind, make sure that all the costs are included in the quote.
There are situations when company owners want to close a completely solvent company. The simplest way to do this is to delete it from the Register of Companies with the help of the Companies House. You can do this by providing evidence that you have met all their requirements. We are talking about five requirements that are not difficult to meet.
First of all, your company must pay all debts to the creditors. Next, it should not trade on the market for at least three months. After that, the company should not have its name changed in the last three months. Finally, the company should not be at risk of liquidation and it should not have any agreements with creditors like CVA (Company Voluntary Arrangement).
There are many things that you should take care of when closing a company in the United Kingdom. Instead of wasting money and energy on this activity on your own, hire a professional in this field.