Close Menu
UK Liquidators

Cheap way to close a limited company?

Low-Cost Liquidation
100% Confidential
Stop HMRC & Creditor Pressure
Partner-led Service

What is the cheapest way to close a limited company? 

If you’re thinking about closing down your limited company, whether that’s because it’s under financial pressure or that it simply serves no further purpose, it’s important to consider all your options.

Cost is clearly an important factor, and you may be wondering is there a cheap way to close a limited company? There are, but you need to factor in all the rules and regulations of eligibility when deciding how to close it down, and also your statutory obligations as a director.

Is your company solvent?

Members’ Voluntary Liquidation (MVL)

If your company is solvent, a Members’ Voluntary Liquidation (MVL) may be a good solution. It’s a formal procedure that’s carried out by a licensed insolvency practitioner (IP), so it does attract professional fees. The company may own valuable assets that could be used to pay these fees, however, effectively making this a cheap way to close your limited company.

Company dissolution

Another possible method of closure is company dissolution, which involves striking the company name from the Companies House register. There are potentially significant drawbacks, however. Your company could face reinstatement to the register if you fail to notify all creditors, for example, and you don’t have the reassurance that involvement from a licensed professional brings.

Worried about your Bounce Back Loan?

If you are a limited company director worried about how you are going to repay your Bounce Back Loan, we are here to help. As licensed insolvency practitioners we can talk you through your options when it comes to repaying your outstanding Bounce Back Loan, as well as handling all negotiations with creditors on your behalf. Call our team today on 0800 063 9262 .

What if your company is insolvent – is there a cheap way to close it down?

If your company is insolvent you may be tempted to close it down quickly, and as cheaply as possible, but it’s important to also consider your legal obligations as a director. If you don’t adhere to the strict insolvency laws in the UK, you could face personal liability for your company’s debts and potential disqualification as a director.

The company dissolution process we mentioned earlier isn’t suitable for insolvent companies, and you could face investigation as a director if you take this route when your company owes money.  

Creditors can make a formal objection to dissolution – HMRC in particular, are known to do this quickly if they’re owed money – and you might be forced into compulsory liquidation as a result.

Compulsory liquidation also isn’t the best option. Waiting to be wound up can result in greater losses for your creditors, which in turn will trigger a stringent investigation into your conduct, potentially leaving you personally liable for the additional debts.

Creditors’ Voluntary Liquidation (CVL)

The best way to close down a company with debts is to enter Creditors’ Voluntary Liquidation. This places the interests of creditors first, and reduces your risk of being held personally liable for company debts.

If you’re an employee of your company, you may also be able to claim statutory redundancy if you enter a CVL and meet certain conditions. This money could then be used to fund the CVL. Alternatively, you may have personal funds available, or be able to use the proceeds of liquidating company assets to pay.

Start your online liquidation today

If you have decided liquidation is the right option for your limited company, you can take the first step and begin the process online using our online portal. Starting the process is quick, simple, and can be done at a time that suits you. Your information will be submitted to your local UK Liquidators insolvency practitioner who will be with you every step of the way. Click here to start your company’s liquidation online.

Seek professional advice

Closing down a limited company inexpensively is possible, even when it has debts. You just need to take care to follow insolvency regulations and act quickly with the best interests of creditors in mind.

The best way to do this is to seek professional insolvency help. Just make sure that you only deal with licensed firms, however, rather than unlicensed ‘insolvency experts’ - you might be charged a hefty fee by rogue companies for a simple referral to a firm of licensed IPs.

UK Liquidators is a partner-led company of licensed insolvency practitioners with more than 25 years’ experience. We’ll provide the reliable advice you need, and operate from a network of offices around the UK. Please contact one of the team to arrange a free same-day consultation.

Jonathan Munnery
Insolvency & Restructuring Expert

If you are considering liquidation for your limited company, taking advice from a licensed insolvency practitioner can help you understand your options.

Is liquidation the right option for you?

Take our 60 second test and find out

Company health risk assessment
Types of liquidation available
Alternatives to liquidation
Understand your next steps
60 Second Liquidation Test
Did you know?
Are you eligible to claim Director Redundancy?
As a Limited Company Director you may be entitled to claim Director Redundancy - Average UK claim is £9,000*.
Pages related to Cheap way to close a limited company?
Stressed Woman With Business Problems
Closing a limited company
Calculator Tax
How to close a limited company without paying tax
Businessman Struggling With Debt
Closing a company with debts and no assets
Ready to Liquidate?
Express Liquidation Service
Ready to start liquidating today? Complete the form and a member of our team will be in touch.
Please note: By completing this form you are not liquidating your company
Contact the UK Liquidators Team

If you are considering liquidation for your company, taking expert advice at an early stage is crucial. At UK Liquidators, our team of licensed insolvency practitioners are committed to providing limited company directors with the help and advice they need to make an informed decision.

  • Free initial consultation
  • Strictly confidential
  • Fully licensed insolvency practitioners
  • Local office support
  • Named case handler throughout
Logo Tma
Logo Business Recovery
Logo Cse
Logo Iip

Looking for immediate support?

Complete the below to get in touch

100% Free & Confidential Advice

This site uses cookies to monitor site performance and provide a more responsive and personalised experience. You must agree to our use of certain cookies. For more information on how we use and manage cookies please read our PRIVACY POLICY