It is an offence:
Do all companies have to go through the insolvency proceedings before being dissolved? No. If the Registrar has reason to believe that a company is not carrying on business or is not in operation, its name may be struck off the register and dissolved without going through liquidation.
The offences attract a fine of up to a maximum of £5,000 on summary conviction (before a magistrates' court or Sheriff Court) or an unlimited fine on indictment (before a jury). If the directors breach the requirements to give a copy of the application to relevant parties and do so with the intention of concealing the application, they are also potentially liable to not only a fine but also up to seven years imprisonment. Anyone convicted of these offences may also be disqualified from being a director for up to 15 years.
A private company that is not trading may apply to the Registrar to be struck-off the Register. This procedure is not an alternative to the formal insolvency proceedings.
Dissolution refers to the closure of a business, often on voluntary decision of the business owner. It requires the payment of all taxes and liabilities. Liquidation refers to the complete sale of the business' assets. This may be the best option if you have no other option when business closure is imminent, such as a merger or acquiring emergency capital, or your cannot pay your debts. Call us to discuss your needs & see how we can help.