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How do I close a newly-incorporated private limited company?

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Leading UK
How do I close a newly-incorporated private limited company?

You have a great idea for a business and you register a company but it doesn’t quite go to plan. You want to close the business a short while later. There can be several reasons why business owners want to close a private limited company which can include the business not making the money expected, problems with suppliers, a lack of time or maybe just wanting to go back to being a sole trader.

Running a private limited company is not easy and if you are in the situation of needing to take a backward step, knowing how to close the company is part of the process. However, it’s not as simple as just stopping trading. For private limited companies, there are specific steps to take and procedures to follow, as well as legal rules and regulations to adhere to.

How do I close my company?

There are certain steps to take in order to dissolve a company, and there are also procedures to follow including notifying organisations, such as HMRC, of your intended plan. There are three principal ways of winding up, or closing, a private limited company:

  • Selling the company
  • Striking off a company
  • Winding up the company.

If the company isn’t working, rather than leaving it dormant, it is better to take action.

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