How To Start A Liquidation

What is needed to start a liquidation? To start a liquidation, you will need to provide details of the assets, creditor details (names and addresses), shareholders and the directors. Without this information, it is impossible to start a liquidation. In addition, it will be essential that identification documents are provided so that, at the very least, verification of the identity of the instructing director and owner of the company can be undertaken.

Starting A Liquidation

This is an article on how to start a Liquidation:

• What information is required to start a Liquidation.
• How you can help us to verify your identity.
• What we do with your personal data to verify your identity.
• The company information we need to get the Liquidation started.

In order to start a Liquidation, the Insolvency Practitioner requires up-to-date details of the structure of the company and its financial position.

How To Start A Liquidation And Get Out Of The Starting Blocks

In order to start a voluntary Liquidation, the Insolvency Practitioner who is likely in due course to become the Liquidator comes as a stranger to the affairs of the company. So he or she will need up-to-date information on the structure and the finances of the company to ensure that accurate information can be provided to the company’s stakeholders and to enable the Director(s) to comply with their Director Duties.

Want To Start A Liquidation?

If you want to start a Liquidation we have designed a streamlined process to get you up and running.

Fill in our Company Information Form and we can help you move forward on your business closure journey today, placing a company into Liquidation.

There is furthermore the question of paying for a liquidation. An explanation of this is in our guide When Do I Have To Pay The Liquidator To Put My Company Into Liquidation?.

We are here to help your company through the Liquidation process from the cradle to its final resting place when it is dissolved.

What Information Is Required To Begin With?

Before a Liquidation can commence the identity of individuals needs to be verified as part of the ethical requirements and money laundering due diligence checks:

Identity Verification

In order to verify the identity of relevant individuals the following documents and information will be required:

• passport
• driving licence
• recent utility bill within the last three months with name and address showing if the driving licence is unavailable

In most instances, all that is required is the passport and driving licence scanned over to us along with confirmation of your consent to us doing an electronic identity check. The documents required will be asked of you before we start the Liquidation process as set out in your engagement letter.

Using the numbers and data on your passport and driving licence we can quickly do an electronic identity check. This saves you the time and trouble of having to get your documents certified. We use Veriphy to help us do this and then we can accept you as a client to get started with the Liquidation.

If we have sent you a link to this page on our website in an email and you have then provided your identity documents we will treat that as your consent to processing your personal data to deal with the identity check.

Company Information

The information that is required, to begin with are documents that show or explain:

• the identity of all individual(s) that control the company such as its company Directors and Shareholders
• names, addresses and email addresses of all Directors and Shareholders
• details of the company name (and former names)
• company number
• names, addresses and amounts owing to each creditor (including Directors and Shareholders)
• breakdown of all of the company assets by category
• tax references and offices / UTR
• VAT registration number
• VAT deregistration date (if applicable)
• nature of the company’s trading activities
• details of company location
• trading address
• registered office address (and former registered office addresses)
• full details of any personal data and sensitive data held by the company
• details of any Information Commissioners Office registration details and GDPR policies
• bank account number / sort code with up to date bank statements for the 12 months prior to cessation of trading
• last 3 years’ full accounts or for such periods from trading starting whichever is the longer
• bank email and address contact details to freeze the bank account
• accountants’ and tax agents’ details
• reasons for the Liquidation
• explanation of any ‘cash’ based trading activities
• location of the company’s records and a simple inventory of the records held
• date trading started
• date trading ceased

Summary Of The Start Of The Liquidation Process

1. Passport and Driving Licence emailed to us to do electronic ID check.
2. Board minutes confirming company authority to start the Voluntary Liquidation process along with an advice and engagement letter.
3. Invoice and payment.
4. Pre Appointment notices for the Gazette, shareholders and creditors meetings.
5. SIP 6 Report to Creditors and Statement of Affairs.
6. Creditors Meeting held to confirm the Liquidation.