They are very different processes. Liquidation means you need a Licensed Insolvency Practitioner like us to act as the liquidator. You do not need a liquidator to dissolve a company.
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In more detail
Liquidating A Company
Liquidation is used where there are unpaid liabilities to creditors and the company needs to be closed down. There may also be assets to be sold and employee’s claims to be dealt with. Employees have special rights in liquidation and may be entitled to financial claims and these can be claimed from the appropriate Uk Government fund.
The directors should choose a liquidator who is a Licensed Insolvency Practitioner, like us, to assist them in the process. It is a lot more complicated than the striking off process above, as meetings need to be called of the shareholders and notices sent to all creditors.
It normally takes about two weeks to get a company into liquidation.
Dissolving A Company
This is the usual method of striking off a company that has either never traded or has stopped trading and is now dormant after three months of non activity. You don’t need a liquidator to dissolve a company, you can just complete form DS01 (available from Companies House), submit the form and wait the two months to make sure no one lodges an objection.
There are various rules to protect shareholders and creditors who must all be given notice of the intention to apply for striking off. There are also fines, possible director disqualifications and imprisonment if you apply to strike off with the intention of concealing this from creditors or other parties so care needs to be taken to follow the procedures laid out by Companies House.
