What is the difference between dissolving and liquidating a company

Dissolved Company Assets: Once a company has been dissolved, the assets of the dissolved company become State property.

Where an application relates to Real or Leasehold Property it is dealt with by: The Office of Public Works.

You can choose to liquidate your limited company (also called ‘winding up’ a company).

The company will stop doing business and employing people.

You’ll need to restore your company to claim back money after it’s been removed from the register.In addition, the term "liquidation" is sometimes used when a company wants to divest itself of some of its assets.This is used, for instance, when a retail establishment wants to close stores.Administration will not always be appropriate but is an alternative to liquidation providing right circumstances and a viable business.A company is usually put into liquidation following a winding-up petition that a creditor will issue.Additional due diligence is also necessary to ensure that all company bank accounts are closed in advance of the notice otherwise the account will be frozen and will become property of the crown.In addition the directors must consider whether the company holds any off balance sheet assets/liabilities such as legal titles or leases.Since 2012 this isn’t possible if the company has more than £25,000 to distribute as the distribution would automatically be considered income in the hands of the shareholder.Generally individual shareholders prefer their distributions as capital as the capital gains tax treatments are more favourable and in certain circumstances Entrepreneurs’ Relief is available providing additional savings.Where a company has no assets or liabilities and has not traded for the past 3 months the strike off route, by completion of a simple form at Companies House and a £10 cheque, should enable the company to be dissolved.I say should but if tax returns are not up to date then HMRC may object to the strike off so it is best to obtain clearance prior to going down this route.

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