Clear, expert guidance to help you liquidate a limited company in the right way—compliantly, efficiently, and with peace of mind.
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Whether your company is insolvent or you’re looking to close a solvent business in an orderly way, we offer expert guidance and a clear path forward.
Our experienced team manages every aspect of the liquidation process. We provide practical advice, ensure legal compliance, and work to achieve the best possible outcome for you and your stakeholders.
There are three main types of company liquidation in the UK, and we can advise and act on each
Used when an insolvent company can’t pay its debts. Directors voluntarily initiate the process to close the business and deal with outstanding liabilities.
A solvent company is closed in an orderly way. Directors make a statutory declaration of solvency, and remaining assets are distributed to shareholders.
A formal process initiated by a creditor through the courts. If successful, the company is forcibly wound up and its assets are used to repay debts.
If you’ve recognised that your company is insolvent, it’s important to act with care. Taking on further credit or favouring certain creditors over others can worsen the situation and may lead to personal consequences.
Continuing to trade while knowingly insolvent is rarely advisable. Instead, seeking professional advice from a licensed insolvency practitioner is the responsible next step—helping you protect both your position and the interests of your creditors.
There are several signs that liquidation may be necessary:
Insolvency – The company is unable to pay its debts as they fall due, with no realistic chance of recovery.
Mounting Debts – The business is struggling with unpaid invoices, creditor pressure, and financial obligations it cannot meet.
No Viable Future – The company’s operations are no longer sustainable, and options such as turnaround or restructuring are no longer suitable.
Legal Action – Creditors are taking steps to recover debts through court proceedings or a winding-up petition.
Once a company enters liquidation, a licensed insolvency practitioner is appointed to manage the process. They take control of the business, handle all statutory requirements, and ensure compliance with the relevant authorities.
As part of their role, they will conduct an investigation into the company’s affairs and the directors’ conduct. This includes reviewing trading history, financial transactions, and any actions taken in the period leading up to insolvency.
Key areas of focus may include:
Wrongful trading
Preferential payments
Transactions at undervalue
Use of director’s loan accounts
How company borrowing—such as Bounce Back Loans—was applied
If the practitioner identifies issues that may have caused loss to creditors, they have a duty to act. This may include seeking repayment or taking further steps to recover funds for the benefit of creditors.
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Liquidating your limited company can be a stressful time and for most there may be many questions you havewhich we have answered here.
Please do not hesitate to get in touch if you wish to speak to someone.
Liquidation is the formal process of closing a limited company. Its assets are sold to repay creditors, and any remaining funds are distributed to shareholders. The company is then removed from the register and ceases to exist.
You should consider liquidation if your company is insolvent—meaning it can no longer pay its debts as they fall due—or if the business has no future and is no longer viable. Solvent businesses may also enter liquidation for tax efficiency or to release retained profits.
An insolvency practitioner is a licensed professional who oversees the liquidation process. They manage asset sales, distribute funds, liaise with creditors, and report on the directors’ conduct and company affairs.
Yes. If your company is insolvent, you can enter a Creditors’ Voluntary Liquidation. This is often the most appropriate route to deal with outstanding debts in a structured and legally compliant way.
In most cases, no—provided you’ve acted responsibly and in line with your duties. However, if the insolvency practitioner finds evidence of misconduct, such as wrongful trading or misuse of funds, there may be consequences.
Employees are made redundant as part of the process. They may be entitled to claim for unpaid wages, holiday pay, notice pay, and redundancy pay from the Redundancy Payments Service.
Yes, you can usually become a director of another company. However, there are restrictions if you’re found to have acted improperly, or if you want to use a similar name to the liquidated business.
Timelines vary depending on the complexity of the company’s affairs. A typical Creditors’ Voluntary Liquidation may take around 6–12 months, though final closure can take longer if investigations or asset recoveries are involved.
Costs depend on the size and complexity of the business, as well as the type of liquidation. In an insolvent liquidation, fees are usually paid from the company’s remaining assets. We’ll give you clear guidance on expected costs upfront.
Not usually. In a voluntary liquidation, court involvement is not required. Compulsory liquidation, however, involves a court process initiated by a creditor.
We have a long, proven track record of helping directors liquidate their limited companies. When working with Marchford you can be sure that our team really does care and do our utmost to make the experience a good one.
Minimising the impact on company and personal assets is one of our priorities for the clients we work with.
We take control of your limited company and deal with all creditors on your behalf directly and professionally.
Our fees are fixed so that you always know exactly where you are. There are no nasty surprises. Ever!
We professionally and correctly handle the closure of your company, helping maintain your integrity as a director.
If you’d like to speak to one of our team regarding liquidating a limited company, you can request a callback for a free and confidential consultation. Alternatively, you can request a quote online by completing our one minute quote form.
If your business is struggling to meet its obligations or you’re unsure whether liquidation is the right path, we’re here to help you make informed decisions.
Speak to a member of our team today for clear, confidential advice tailored to your situation. There’s no obligation—just a chance to understand your options and take control of the next step.
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Specialists in limited company closures. Our experienced team are on hand to help company directors understand the myriad of options for closing their business.
Call us: 01752 874856
Email us: info@marchford.co.uk
Our address:
Marchford Partners with Dean Smith, MIPA, MBA is licensed to act as an Insolvency Practitioner in the UK, by the Insolvency Practitioners Association (IPA).
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