Insolvency & Company Closure Services

If a company cannot pay its debts as and when they fall due and have more liabilities than they do assets, then the company will be deemed insolvent. At this stage it is better to take action as any delays could result in the position getting worse, some options running out and potential liabilities to the directors.

Sometimes, it is inevitable that a company will need to close.  If it is at this stage, we will make sure that all other avenues are explored and then advise on the most appropriate closure route.

We understand that there will be job losses and lots of mixed emotions from all people connected with the firm.  This is particularly difficult if it is a family business.

There may be liabilities that directors of other key persons will become responsible, such as a personal guarantee from the bank.  We will take all this into account.

Whatever way a company is closed, at Immigration Tax Partners we make sure that this is done with decorum and professionalism in a timely manner.

1. Compulsory Liquidation

A Compulsory Liquidation is where the Court makes a Winding Up Order and an Insolvency Practitioner is appointed (usually the Official Receiver). A creditor will have typically instigated this when presenting the Company with a Winding Up Petition, which normally follows a formal or statutory demand for payment. Due to the required notice periods at each stage of this procedure, it could take 6 weeks or longer before the Company is placed into liquidation. Leaving creditors, employees and customers in limbo in the meantime.

This is the process that creditors can use to force a company into liquidation if it fails to pay monies it owes to them in a timely manner.  It is commonly used by HM Revenue and Customs when companies fail to pay their taxes or penalties when they are due.

If you do get a winding-up petition against your company, it is essential to act quickly as there may be other solutions available. Call us on 020 7225 3288 and we can help.

2. Creditors Voluntary Liquidation (CVL)

A CVL is where the directors instigate the procedure. They are effectively holding their hands up and saying the company cannot survive and needs closing. It is a voluntary liquidation, and this could take place in as little as 11 days from the day the decision is made to liquidate but is typically about 3-4 weeks. There is a lot of red tape that goes with this, but our partner insolvency practitioners have streamlined this as much as possible to carry out an efficient and timely service.

This is the most common insolvency procedure. It is a relatively complicated procedure, but we have streamlined it as much as possible to take the complexities out of it.  We will support and guide you through this.

If you are thinking of liquidating your company, please contact us on 020 7225 3288 or schedule a 15-min call with us (link) and we will get back to you.

3. Members Voluntary Liquidation (MVL)

When the shareholders of the solvent companies decide to close it, if the distribution is likely to be more than £25,000, it is necessary to use the MVL procedure as by doing so, the shareholders may have some tax savings.

  • A company can come to the end of its useful life for a variety of reasons, such as:
  • A shareholder may want to retire.
  • A shareholder may wish or take their investment (and its value) back out of the company.
  • There may have been changes in the market that make the company’s services redundant.
  • The company may have been incorporated to carry out a project, which is complete (SPV).
  • An Insolvency Practitioners’ services are necessary to facilitate an MVL and at Revive Business Recovery we have an expert in this area.

An MVL is a relatively straightforward liquidation (but with lots of paperwork). Our partner insolvency practitioners have streamlined this procedure to make it easier and quicker to do and we ensure that you are fully informed and supported through this.

If you are thinking of liquidating your company, please contact us on 020 7225 3288 or schedule a 15-min call with us (link) and we will get back to you.