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Dissolution
Dissolution
Dissolution is the process of voluntarily closing a company that is no longer trading and has no debts. It is a straightforward procedure used to strike off a company from the Companies House register, typically for businesses that are dormant or no longer needed.
When to Consider Dissolution:
How RTI Can Assist:
RTI provides expert guidance throughout the dissolution process, ensuring all legal requirements are met and the company is properly closed. We’ll help you submit the necessary documentation to Companies House and ensure that any remaining assets are dealt with correctly.
FAQ
I’ve taken a new job, will my employer be contacted?
No. We have no requirement to contact current employers.
Why can’t I just leave my company dormant and allow it to shut down?
A director can leave their company dormant and it’ll likely be struck off by a creditor. However, if they allow this to happen their conduct as a director will be investigated by the insolvency service. When they investigate the director, if any fraudulent activity has taken place (common cases are where a director allowed the company to be stuck off knowing they had creditors) the insolvency service WILL look to issue a compensation order which will move certain company debts into a personal debt. Over and above, a director might face a long-term ban of being a director and in some cases directors will face jail time.
Revolution RTI are able to act as a safeguard for directors, they can put their trust in us knowing we will have their interest in mind when doing our investigation work and closing their company.
Directors need to follow the genuine advice and guidance that we offer. We allow the director to maintain control of their situation as opposed to leaving it in the hands of the insolvency service. Yes, there is a fee involved which is ultimately a fraction of the price that a director would have to pay if the compensation order is issued.
Dissolution is typically used for solvent companies, whereas Liquidation is necessary when the company has debts and is insolvent. If your company has outstanding liabilities, a Creditors Voluntary Liquidation (CVL) might be the more appropriate option.
Pages related to Company Liquidation
CVA Company Voluntary Arrangement
Creditors Voluntary liquidation (CVL)