The cost of liquidation can increase if the company has more creditors or unpaid employees.
In more detail
Insolvency and Liquidation
You do have some choices.
- You can pay us to liquidate the company cheaply. This is called Creditors Voluntary Liquidation. We prepare all the paperwork for you and give you a completed pack of all the forms you need to sign. We then call the meeting of shareholders and the creditors deemed consent meeting. We can do the simplest type of liquidation for £3,000 plus vat. This process usually takes about ten days so is quick. We do not need to advertise in the London Gazette before hand, so this makes the liquidation cheaper.
- If you have no funds left at all and cannot afford to pay for a cheap liquidation, then you can wait for a creditor to push you into Compulsory Liquidation. However, they may not want to do that as it costs them money. It can also take a long time for it to happen – up to three months.
- If the company has stopped trading and is defunct then you may be able to use form DS01 from Companies House to strike the company off. This is very cheap at only £10.
A big advantage of going into liquidation is that it will stop your creditors from chasing you for money. It will also stop HM Revenue and Customs chasing you for VAT, tax and PAYE returns and stop Companies House sending you reminders.
It also means unpaid employees can claim their arrears of wages and redundancy. So, there are various advantages in finding the money for a quick and cheap liquidation.
