Top 10 FAQs About Liquidating a UK Company in 2025
For many company directors, the idea of liquidation can feel like entering unfamiliar territory. Whether you’re closing down a solvent business or facing financial difficulties, understanding the process is key to making the right decisions. To make things clearer, we’ve put together this guide: the top 10 UK company liquidation FAQs that directors are asking in 2025. 1. What does liquidation actually mean? Liquidation is the formal process of closing a company and bringing its affairs to an end. This typically involves selling off assets, paying creditors (where possible), and formally dissolving the business from Companies House. There are different types of liquidation depending on your company’s financial situation—either voluntary or compulsory. 2. What’s the difference between solvent and insolvent liquidation? If your company can pay its debts and has money left over after winding down, it’s considered solvent. In this case, you’d likely go for a Members’ Voluntary Liquidation (...