What is Corporate Dissolution?
A company files for corporate dissolution after voluntarily closing or being ordered to dissolve. The process involves liquidating assets to pay debts, and steps include filing dissolution documents like the name, incorporation date, dissolution authorization date, and majority authorization.
Process of Company Dissolution
Dissolution is the legal process of winding up a company’s affairs and dissolving it so it no longer exists. This can be done voluntarily by shareholders or involuntarily by a court order.
Liquidation Process
Liquidation is when a company’s assets are extracted and used to pay off any remaining debts before that company is dissolved.
Steps to Dissolve a Company
- The first step is for the owners or board of directors to create a resolution to dissolve.
- Filing articles of dissolution with the secretary of state’s office.
- Liquidating any company assets not used as collateral for loans.
Reasons for Company Dissolution
Dissolution is the right choice for companies with no assets or debts, and when the company has no further use.
Notification and Record Retention
Notify interested parties and HMRC of your decision. This has to be done within 7 days of filing your dissolution application. Companies House will continue to hold information on dissolved companies for 20 years.