Liquidating limited company
Please note MVLs can be costly in liquidators’ fees given the amounts involved. However this could be less if the liquidation is very straightforward.New rules The proposed new rules particularly concern companies that are ‘phoenixed’, i.company is closed and shortly afterwards a similar company is formed by the same individual doing the same work.If an individual does decide to close their company then in future they will have to ensure they do not open a similar business for at least two years otherwise they risk the capital distribution being reassessed as income.Friend & Grant have the great mix of being very professional and friendly too.You'll need to restore your company to claim back money after it's been removed from the register.In the previous articles, we addressed the legal bases provided by the Civil and Commercial Code, passing a special resolution, and actual procedure for registering the dissolution of a Thai company. has registered the dissolution of the company and the appointment of the directors, the liquidators must, as soon as possible, prepare a balance sheet and have it certified by an auditor and thereafter summon a general meeting of the shareholders.It is hoped that the changes will not apply to genuine commercial transactions.
The business is then closed to extract the cash as capital and a new consultancy company set up.
The Government has announced proposals to introduce new rules for company distributions on company closures with effect from 6 April 2016.
The draft legislation was published by HMRC on 9 December 2015 introducing important changes to the current rules which will include changes in the case of a members’ voluntary liquidation (‘MVL’) where distributions are made on or after 6 April 2016. Current position When a business closes the final monies can be distributed as either an income distribution (a normal dividend) or a capital distribution. Currently if you are a higher rate tax payer an income distribution will attract further tax at 25% of the net dividend.
Many business owners have over the years built up real value in their limited companies.
Some will sell their businesses but many will simply close their companies down and distribute what monies are left in the company to shareholders.