If you are in a position of having to wind up your Company there are some guides that you should follow.
Closing your company can be bittersweet.
Before you shut the doors for good, there are some important steps to take to ensure everything goes smoothly and legally.
Settle debts:
Pay off all creditors, including suppliers and employees, and any outstanding taxes, before dissolving the company.
Collect debts:
If anyone owes your company money, collect it before closing. You might sell these debts to a collection agency or transfer them to another entity, but get legal advice on the proper procedures.
Distribute assets:
After settling debts, distribute any remaining assets (cash, equipment, etc) according to your company’s constitution or shareholder agreement. Ensure all director and shareholder resolutions are completed before taking any surplus cash. Talk to us first!
Note:
The winding-up process can vary based on your company’s ability to pay its debts (solvency) and the reason for closure. If your company is insolvent, different rules apply, and you might need to enter liquidation.
Warning
If you overlook collecting a debt or leave an asset in the company after winding it up, you won’t be entitled to it any more – it will belong to the government. Check carefully before you give instructions to wind up.
Conclusion
Winding up a company involves legal and financial complexities. Talk to us at KTS to ensure you comply with tax and legal requirements and handle everything in an orderly manner.
