How do I close a solvent UK limited company?

If you enter into a members’ voluntary liquidation (“MVL”) then the directors (or a majority of them if there are more than two) must make a statutory declaration of solvency, which confirms the company will be able to pay all its debts within 12 months. If this declaration is made without a genuine belief in its truth then there are penal consequences, so it is important that you are confident that the company can in fact pay all liabilities within a 12-month period.  

Unless you are able to agree a surrender of the lease early then it would be necessary to pay the rent until expiry of the lease. You should also consider any possible dilapidations claim the landlord may have and it may be sensible to negotiate with the landlord with a view to agreeing a single lump sum payment in settlement of all current and future liabilities under the lease.

This is something that one of our licensed insolvency practitioners could assist you with before deciding if an MVL is suitable for your company. If it isn’t, you can still close the company but the procedure would be a creditors’ voluntary liquidation.