Top 10 FAQs About Liquidating a UK Company in 2025


Liquidation is the formal process of closing a company and bringing its affairs to an end. This typically involves selling off assets, paying creditors (where possible), and formally dissolving the business from Companies House. There are different types of liquidation depending on your company’s financial situation—either voluntary or compulsory. If your company can pay its debts and has money left over after winding down, it’s considered solvent. In this case, you’d likely go for a Members’ Voluntary Liquidation (MVL). If the company can’t pay what it owes, it’s insolvent and would go through a Creditors’ Voluntary Liquidation (CVL) or face Compulsory Liquidation.


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