Dissolving a Company
What does it mean to Dissolve a Company?
Is Dissolving a company a form of Liquidation?
Dissolution and Liquidation are two separate processes. Dissolving a company is a way to close a company while it is still solvent and has the ability to settle its debts within a 12 month period. Liquidation is a process to close a company that is insolvent, meaning that your liabilities(debts) are in excess of your assets.
What are my alternatives?
Dissolving a company can often be the right decision for more straightforward situations, though there are many alternatives if your situation is more complicated.
If your company is solvent and has a large amount of assets and creditors that need to be dealt with by a professional insolvency practitioner to avoid further complications a Members’ voluntary Liquidation (MVL) might be your best option for closure of your company. This option is only viable for companies that can settle their debts within a 12 month time period however.