Closing a limited company
Get a fixed-fee liquidation quote
Tell us about the company and a licensed insolvency practitioner K2 trusts will come back to you directly with a fixed-fee quote, usually within one working day. No obligation, and the practitioner tells you plainly whether a CVL, an MVL or a simple strike-off fits.
CVL
The company cannot pay its debts. The directors choose the liquidator and stay in control of the timing.
MVL
The company is solvent. Creditors are paid in full and the reserves go to the shareholders tax-efficiently.
Strike-off
No debts and no trading for three months. Cheapest, but creditors can object and have it restored.
Before you liquidate a business that could trade on
If customers still want what you sell and the problem is debt or cash rather than the business itself, a turnaround, a CVA or new funding may save it. K2's partners have done that work since 1990. Talk to a turnaround specialist first; it costs nothing to ask.
Frequently asked questions
What is the cheapest way to close a limited company?
If the company has no debts and has not traded for three months, voluntary strike-off with form DS01 costs a £33 Companies House fee. If it owes money it cannot pay, strike-off is not available in practice: creditors can object and have it restored, and a creditors' voluntary liquidation is the proper route. If it is solvent with significant reserves, a members' voluntary liquidation usually costs more in fees but can save far more in tax.
How much does a creditors' voluntary liquidation cost?
For a small company with straightforward affairs, practitioners typically quote a few thousand pounds plus VAT, normally paid from the company's assets before the creditors. More complex cases, with property, many employees or investigations, cost more. A fixed-fee quote sets out what is included.
Is K2 an insolvency practitioner?
No. K2 Business Partners is a turnaround and investment firm. Liquidation quote requests are passed to a licensed insolvency practitioner K2 has worked with and trusts, who contacts you directly. If the business looks viable, K2 may also call to discuss whether a turnaround is the better answer.
Read more: CVL and MVL explained · Striking off a company · Closing a company with HMRC debts