What is the difference between dissolving and liquidating a company

After this, there are several steps leading up to liquidation and striking a business off the register.

This is not to be confused with the term ‘winding up’, which many people use to signify the ceasing of their business or trading (see above).Find out more about winding up petitions and what to do if you’ve received one.Once all long-term relationships have been severed and obligations have been dealt with, the business’ assets are liquidated (sold) and according to UK law, this must be handled by a licensed Insolvency Practitioner. If the business is solvent and all debts are satisfied, the proceeds are distributed among members.The Declaration is first sworn in the presence of a solicitor and then filed with Companies House.Once the directors are believed to have made a full enquiry into the company’s financial affairs and the company is in fact solvent, the first step in winding up a company is to hold a meeting of the board.

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