The reason I chose Forbes Burton was mainly because of Emma. The decision to close my business was a stressful one and, never having gone through this before I was nervous about the consequences. What helped me no end was the reassurance Emma gave me in "holding my hand" through the process and it was her calm and professional guidance that made a huge difference in my ability to deal with the anxiety of closing NBI down. Huge thanks Emma. I have no hesitation in recommending FB/Emma.
What are your options for company closure?
Option 1 - Liquidation
This is the most costly and more intrusive process, one which essentially removes the authority of a director. Control of the process and the business concerns are overseen by the appointed Insolvency Practitioner.
A director that has previously liquidated a company can, in future engagements, be viewed as a higher investment risk, potentially affecting their ability to perform business in the future.
Option 2 – Strike Off (also known as Dissolving or Dissolution)
A far cheaper option. This can be performed by the director themselves, allowing them to retain control and also ensuring unnecessary costs are not incurred.
The process does not demand that 3rd parties are given intrusive access into the business operations and the affairs of the directors personally. If correctly undertaken, a strike off has no lasting negative reflection on the directors.
What is a Company Strike Off?
Companies that are formed and registered within England and Wales have a record of their existence kept at Companies House.
While this record is in place the company is considered operational and valid. Striking off a company is the legal act for the removal of a company from the register.
Once a company is struck off from the register then it is noted as Dissolved.
What does this mean for Directors?
When a company enters dissolution it has reached a point where it’s debts have been paid in full or informally negotiated to the satisfaction of the creditors.
If the dissolution has been carried out correctly then there are no lasting effects on a director.
At the final point of dissolution the companies assets (if there are any) are absorbed by the crown.
WARNING! Without the dissolution/strike off procedure being followed correctly directors may become personally liable for the indebtedness of the company and you may face a fine and possible prosecution. Speak to us now about closing your company correctly, call us on 01472 254914.
I would like to thank Forbes Burton for their assistance in helping me close my company. Overall they offer a great service that has never really needed my input which has been ideal as I have managed to get on with other things around the closure taking place. I would definitely recommend Forbes Burton to anyone in the same situation as me, thanks again.
What are the benefits of a Company Strike Off?
- Immediate steps can be taken to start closing your company.
- There is no formal meeting of creditors.
- It’s possible to clear thousands of pounds of bad business debt.
- Not as intrusive as formal liquidation procedures.
- You retain final control of the process.
- It’s far less expensive than liquidation.
What are the problems?
In our years of dealing with company closures we have come across many things that can disrupt or halt strike off proceedings, we’ve come to understand that each case brings its own problems; some examples we’ve dealt with include:
- Unhappy creditors/HMRC
- Objections lodged at Companies House will stop a dissolution.
- Accusation of wrongful trading can have implications for directors.
- Employment tribunals can arise should previous employees be unhappy at their dismissal.
- Not correctly filing returns can lead to objections from government bodies.
- Creditor forcing compulsory liquidation.
What we can do for you
The main benefits of using us to help you with your company closure are:
- You save time, all the work is done by us at our offices by expert case managers that are able to handle all the mailing, calling, and 3rd party relations.
- We'll prepare a comprehensive set of reports for any creditors and related parties. Doing this means one very important thing, it overcomes the likelihood of the company being brought back and ensures that once the company is closed, it stays shut.
- You get the chance to purchase assets from your company, a liquidation would claim all assets which then sold off, but a Strike Off does not demand this.
- We can arrange independent valuation for asset, doing so ensures that the company directors are not seen as fraudulently operating the company / asset stripping.
- Our service also gives protection against S.216 IA ’86 re-use of company name provisions.
- You don't need to hold a meeting of creditors, another requirement demanded by a liquidation.
- We deal with HMRC and Companies House on your behalf, our case managers have a wealth of experience and know how to operate correctly with the relevant departments of government.
- From the moment you allow us to take on your closure, we start acting for you, we begin immediate action and we guarantee to reach the outcome you want.