Winding down a Ltd company - costs?

A

Abraham123

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We are planning on winding down a LTD company later this year. We have no debts. Can anyone give me an estimate of how much it will cost to wind the company down through an accountant? We've been quoted 5k which we don't have.

Thanks in advance

A
 
The website that Time linked is good.

just from my experience two years ago...

I closed my company - i.e. members voluntary liquidation.

The company had assets- cash ,nothing else - which meant that i couldn't just apply for very cheap "strike-off."

Frankly I wanted to do the liquidation myself.
My wife insisted we use an accountant. Our audited accounts were up-to-date ,we hadn't traded for a year, our auditors confirmed that we didn't owe a penny to anyone -and we had the Revenue letters up to date saying what we were compliant.

We paid just over 2k to the accountant to liquidate the company. Pay nothing more if everything has finished and you've audited accounts up-to-date with no debts.
 
@Abraham123 - our colleague Oldnick has identified the key issue as in is it a 'members voluntary' winding-up.. as in able to pay all creditors etc. - what is your situation? Oldnick fee is probably on low side.
 
Yes Wizard is right.my fee was far lower than normal as there was nothing -no crdits or debits - except money in bank.
All accounts and trading long finished, audited,and tax people said we were compliant-no tax owed. So, I should have emphasised that my situation was unusual.
 
oldnick said:
The website that Time linked is good.

just from my experience two years ago...

I closed my company - i.e. members voluntary liquidation.

The company had assets- cash ,nothing else - which meant that i couldn't just apply for very cheap "strike-off."

Frankly I wanted to do the liquidation myself.
Click to expand...

You could have simply paid yourself the cash, paid the taxes on it and then applied for voluntary strike off on the basis that the company had no remaining assets or liabilities. However the members voluntary liquidation was possibly a far more tax-efficient option for you, even with liquidation costs included.

Alternatively, you could alternatively have taken on the liquidation yourself, but left yourself doubly open (as director & liquidator) to ODCE enforcement including prosecution for any breaches of duties (including inadvertent breaches) in the process or prior to its commencement.
 
The cash in my company was share capital,equal to amount I put in it, which I took out ,tax-free, on liquidation of company.
I wanted to do liquidation but higher authority -wife- forbade it.
 
oldnick said:
The cash in my company was share capital,equal to amount I put in it, which I took out ,tax-free, on liquidation of company.
Click to expand...

Do you mean the issued share capital, eg 100,000 ordinary shares at €1 each? Do you mind me asking why was share capital so high? Was a directors loan capitalised at some stage in the past? Its very rare that this is done as its very tax inefficient.
oldnick said:
I wanted to do liquidation but higher authority -wife- forbade it.
Click to expand...

She was very wise, for the reasons I've stated above.
 
I was a travel agent. In this country,I believe more than anywhere else, there is strict licensing ,part of which requires the travel company to have paid-up-for-cash share capital that represents a "reasonable" proportion to turnover.
My T.O reached 10 million -share capital was ca. €130k. Somewhat on the small size.

I remember all accountants, save those with travel company experience, being surprised at the cash amount. Even the smallest travel agents with ca.1 million have several thousand euros paid up for cash (or whatever the term was) share capital.
 
Thanks for clarifying. I haven't worked in that area and wasn't aware of the requirement. Although there is a need for travel agents to be properly regulated as they are holding clients' money, this particular rule sounds bizarre and self-defeating.
 
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