It means you don’t have the cash or assets to meet your current liabilities, such as money owed to suppliers or other debt repayments that are due.Insolvency proceedings must be overseen by a qualified liquidator, receiver or administrator.The way you close your limited company will depend on the amount of assets your company has.
Your company will need to have some money or assets that can be sold to pay the IP's fees.
The fees are normally around depending on the size of your business and how much work will be needed to close your business down.
If there’s one piece of advice to hold above all others while running your business, it’s this: cash is king.
It doesn’t matter how much you are selling or the size of your profit, if your business doesn’t have enough cash to pay staff and suppliers you are in big trouble.
Anybody taking up these roles since 1986 must be authorised insolvency practitioners.
When limited companies become insolvent, they go into liquidation.
An IP will sell any company assets, pay company creditors, deal with the affairs of your company and then close your company.
They will also investigate your conduct as a director.
The application will cost you of sending it to Companies House.