Alternative to Insolvency
QUESTION: Can I Dissolve My UK Ltd Company If It Has Debt?
Answer: NO, You Can't.
(But read on, you may be surprised)
You CANNOT Dissolve Your UK Ltd Company if it has debts to any third party.
You cannot dissolve your UK Ltd Company without an insolvency practitioner if your company owes debts to any third party. This can be HMRC, your bank, suppliers, customers or anyone with whom the business has a financial connection.
You Can Wind Up the Company Using A Liquidator, and then dissolve the company.
But that is very, very expensive.
Worse for you as Company Director is that the Insolvency Practitioner is responsible as an officer of the court to report any wrong doing to the Official Receiver, or to UK authorities such as HMRC.
Most small business owners confuse the finances of the business with their own at some point. For as long as you are in control of your UK limited company this is not usually a problem. But, once the IP is appointed you can expect the third degree and a forensic audit of all your transactions for the previous three years.
However, there is a simple, fast & low cost alternative!
Are you struggling with your limited company? Can't pay its debts? We can help.
We help rescue companies using a low cost & little known alternative to insolvency.
You can sell your company and its debts & walk away from ALL liabilities.
Watch the short video below.
SIMPLE LOW COST ALTERNATIVE TO INSOLVENCY In 3 Easy Steps...
- Download and read our free guide today. Click here.
Everything you need to know about our simple low cost alternative to insolvency. - List your business for sale for FREE
(We think that when you read your free guide you will agree why this is the perfect simple and low cost alternative to insolvency) - Sell your company to one of our 8,000+ buyers and walk away from your company’s liabilities.
Now you've removed yourself from your company’s liabilities leaving you free to walk away, or restart with a new business.
Some Features of Our Low Cost, Fast Alternative to Insolvency
- FAST SOLUTION
- ULTRA LOW COST
- REMOVES DIRECTORS LIABILITY
- BASKET CASE COMPANY? NO PROBLEM
- FULLY AUTOMATED SOLUTION
- COMPANIES HOUSE FORMS
- ZERO LISTING FEES NO CREDIT CARD NEEDED
- ABSOLUTELY NO FEES IF WE CANNOT FIND A BUYER
- NO INVASIVE IP REPORTS INTO YOUR ACTIONS AS A DIRECTOR
Some FAQs
How much does it cost to list my UK Limited Company/ business for sale?
Listing your business is entirely FREE on our platform. If we do not find a buyer for you there is absolutely no fee to pay.
How much does it cost if my UK Limited Company/ business sells on your platform?
Our ultra low fees start at only £1997 for a completed sale of your limited company.
The price you pay will be determined by which of the three packages you chose when listing your business. You can find the information here.
There are no other hidden fees.
Where will my business be listed for sale?
All our businesses for sale are listed with our partner platform listing UK limited companies for sale. We have an active buyers list of over 8,000 global buyers looking for UK limited companies with a trading history.
Who on earth buys struggling companies?
There are many reasons why a buyer will buy your business, even if it's facing bankruptcy...
- The business has a trading history. This is important to buyers.
- Buyers may be looking for your customer lists. Finding new customers costs money.
- Some buyers are turnaround specialists who may see value where you no longer do
- Even losses can be valuable to a new owner for tax purposes
- Many buyers like to aggregate your clients with theirs
How much can I sell my business for?
Our buyers will pay £1 for your UK limited company, regardless of the debts and liabilities attached to the company.
Why would I sell my business for just £1?
£1 or one peppercorn is the lowest nominal figure to make a contract legal under English Law.
Remember you are selling the company's liabilities. If your company was trading well, you would not be looking for an alternative to insolvency.
However, if you remain the owner of a struggling business it could cost you tens of thousands in insolvency fees, and maybe even personal liability for debts incurred during your ownership. You can also face being disqualified as a Director for up to 15 years.
The one sure way to remove your personal liability is to sell that liability to a third party - a new owner. This is what the £1 payment is for.
So, you can sell your company. All the debts and liabilities will move to the new owner, and it is up to the new owner to deal with creditors, HMRC, PAYE, leases etc. All the liabilities of the company.
Does Cash Business Buyers actually buy companies?
No, we are simply an intermediary platform match making sellers of businesses with buyers.
Who sets the price for my sale?
You can set the price for your sale. However, with businesses that carry debts most companies will need to be sold for a nominal value to a buyer who may risk liability from their new ownership. The sale price will usually be £1 just as a formality for the transfer of ownership.
How much does it really cost to sell my business?
You can choose one of our three packages starting at the lowest price in the industry - just £1997.
All our fees are flat and include all costs. There are no hidden fees. You will only be asked to pay for your chosen package once we have found you a buyer and you have agreed to the sale.
Is selling my company better than declaring insolvency?
If you are actually trading whilst insolvent then you must under the duties as a Director call in an insolvency practitioner.
However, if you are simply struggling with your business but feel that a new owner may reasonably inject new life, energy and money into your business then it's perfectly acceptable to sell the company and transfer any future liability to the new owner.
Do you help with insolvency?
No, we are a platform for sellers looking to sell their companies. If you need to seek insolvency advice you should seek it from a licensed insolvency practitioner.
Why do I need to pay for your service?
We are constantly marketing for business buyers. Our mailing list currently has over 8,000 potential buyers, all of whom are looking for 'diamonds in the rough'.
Our fees are the lowest in the industry because we use AI and automation to match you with a willing buyer.
Our fees cover our marketing and online platform and are a mere fraction of the cost of placing your company into administration.
Can't I just wind up and dissolve my company?
You can only wind up a company that does not have debts.
If your company has no debts and no creditors you can apply for a dissolution via Companies House at little or no cost. All assets of the company will revert to the Crown, not to you personally!
However, a company with debts can only be sold, or placed into administration with a licensed insolvency practitioner.
If I'm already insolvent, is it too late to sell my business?
If you have already contracted a licensed insolvency practitioner has produced a report on your business stating that you are trading whilst insolvent then only a licensed insolvency practitioner may deal with the sale of the company and/or its assets from that point on.
But as long as you act promptly and in the best interests of the company then you can sell your shares in the business and transfer ownership as a legitimate alternative to administration.
The good news is that if you have not instructed and insolvency practitioner then you still have time to sell your company and walk away from its liabilities.
What if the new owner puts the company into administration?
As long as you are no longer the owner, no longer work for the company and no longer a director, then the responsibility no longer rests with you.
