The quick answer
When seeking liquidation advice you should contact a Licensed Insolvency Practitioner like us. Only they are allowed to liquidate a company.
The process of putting a company into liquidation takes about two weeks. It will mean the company ceases to trade and any business premises will be closed. All employees will be made redundant including directors.
All company assets will be realised to help pay back creditors although the fees and expenses of a liquidator get paid first.
In more detail
It is important that you seek the appropriate professional advice before making any quick decisions. Most insolvency practitioners will provide an initial meeting or conference call so speak with them to ensure you are making the right choice. You can meet us or arrange a Zoom call or telephone call or email and ask us any questions.
It is also best that once you have made the decision to liquidate a company to get on with it as soon as possible, in order to limit the financial loss and retain as many assets as possible.
Delaying can only make the position worse; for example for employees or creditors who do not know what they will get paid back so may continue legal action.
Liquidation stops all legal action and means the company will stop trading. Every creditor claim for money owed will be fairly assessed. The company assets will be realised (if there are assets) and paid out in proportion to all creditors after any expenses of the liquidation.
Liquidation also stops creditors like HM Revenue and Customs, banks, landlords and suppliers from taking further legal action. It means you no longer have to produce annual accounts or VAT returns and your liability as a director to file forms at Companies House also ends. It also means the government redundancy fund can be triggered to pay out the employees and directors.