# want to close ltd company



## steadyeddie (15 Jan 2009)

need some advice on closeing but dont know what the outcome will be owe money to bank ,collecter general to name a few what will happen if i close up i have hit a wall with the constuction inds stopped please need some advice,cheers


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## Graham_07 (15 Jan 2009)

Sorry to hear of your situation. It sounds like you are facing insolvent liquidation. You really need to speak with an insolvency practitioner. ( Start by sitting down with your accountant I would say and go from there )


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## viztopia (15 Jan 2009)

do a search on this site and you will come accross this kind of question a lot and peoples recomendations on that. i am an accountant and i have used  and i have found them very helpful. i dont touch liquidations myself as they are too complicated for me. give them a call and they will go over your options on the phone. Alternativley i am attending a liquidation tomorrow - i know the liquidator and you could go along to meet him and he could go through your options. whatever you do dont bury your head in the sand and address this the sooner the better.


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## steadyeddie (15 Jan 2009)

viztopia said:


> do a search on this site and you will come accross this kind of question a lot and peoples recomendations on that. i am an accountant and i have used  and i have found them very helpful. i dont touch liquidations myself as they are too complicated for me. give them a call and they will go over your options on the phone. Alternativley i am attending a liquidation tomorrow - i know the liquidator and you could go along to meet him and he could go through your options. whatever you do dont bury your head in the sand and address this the sooner the better.



 			 			cheers for that where is that liquidation on and what time at thanks a mil


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## simplyjoe (16 Jan 2009)

Graham_07 said:


> Sorry to hear of your situation. It sounds like you are facing insolvent liquidation. You really need to speak with an insolvency practitioner. ( Start by sitting down with your accountant I would say and go from there )


 
Graham is correct. However I have found some accountants reluctant, through lack of personal knowledge and other equally dishonourable reasons, to advise on the liquidation route. In the current climate directors often have little option but to liquidate. Sometimes any other route may be illegal. Speak to a reputable insolvency practitioner or force your accountant to discuss all alternatives.


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## Elphaba (16 Jan 2009)

The advice I received from my accountant last year was that it would cost about 15,000 to liquidate! The easiest option at the time was to voluntarily
liquidate the company, but all your debts have to be paid to do this. Luckily we got through it and are still trading, but there has to be an easier way to wind up small businesses in Ireland, particularly during the current climate,
Information on this in general is very poor, with varying info available from accountants. It is much more straight forward, clearer less expensive to wind up a company / business in U.K. This is an issue that urgently needs to be updated and addressed.


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## MandaC (16 Jan 2009)

Elphaba said:


> The advice I received from my accountant last year was that it would cost about 15,000 to liquidate! The easiest option at the time was to voluntarily
> liquidate the company, but all your debts have to be paid to do this. Luckily we got through it and are still trading, but there has to be an easier way to wind up small businesses in Ireland, particularly during the current climate,
> Information on this in general is very poor, with varying info available from accountants. It is much more straight forward, clearer less expensive to wind up a company / business in U.K. This is an issue that urgently needs to be updated and addressed.



Depending on what is in the company - if you are able to pay off all your creditors, what is left - cash at Bank, is there property involved?  How many classes of shares.

I would think for anyone left to voluntarily wind up a company with just cash  at Bank and perhaps a couple of creditors that €5k plus outlay is a reasonable figure.(members voluntary liquidation)  

There is some people charging significantly more than this, I know some practices wont touch a liquidation for less than €10K.

Sadly, most of the liquidations these days are where companies are insolvent.

In the case of a creditors voluntary liquidation, then it is very hard to estimate fees, would be far more than €15K,  as very heavy on the time clock.  Somtimes, it can be like opening a can of worms.   

Incidentially, business is booming in liquidations.


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## simplyjoe (19 Jan 2009)

Cheapest price for a solvent liquidation assuming all tax returns submitted and all creditors paid, no property, cash only €2k plus vat.

Cheapest price for a standard insolvent liquidation with no land or buildings €8k plus vat.


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## MandaC (20 Jan 2009)

simplyjoe said:


> Cheapest price for a solvent liquidation assuming all tax returns submitted and all creditors paid, no property, cash only €2k plus vat.
> 
> Cheapest price for a standard insolvent liquidation with no land or buildings €8k plus vat.



Very good prices


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## jimmmy (21 Jan 2009)

Elphaba said:


> Information on this in general is very poor, with varying info available from accountants. It is much more straight forward, clearer less expensive to wind up a company / business in U.K. This is an issue that urgently needs to be updated and addressed.


 
I could not agree with you more.


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## billythefish (28 Feb 2009)

simplyjoe said:


> Cheapest price for a solvent liquidation assuming all tax returns submitted and all creditors paid, no property, cash only €2k plus vat.


 
joe, excuse my ignorance but what's the difference between a solvent liquidation and a voluntary strike-off?


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## simplyjoe (2 Mar 2009)

In a solvent liquidation the remaining assets are distributed by the liquidator. This is usually to the shareholders and the money is then taxed at CGT rates. Therefore this route is only used if there is substantial cash (equivalents) to distribute to shareholders/directors. In a voluntary strike off there are no assets - they have been distributed already. If money was given to the shareholders it will be taxed at the marginal rate. A solvent liquidation is carried out by a registered insolvency practitioneer. A voluntary strike off is carried out by the board/directors.
Before doing this in an owner ran company each directors can avail of tax free termination payments €10,160 plus €760 per year plus an xtra €10,000 once every ten years (The latter has to be pre approved by the Revenue). This includes the second non active director which is common in most small companies. They do not have to have taken a wage. As always seek independent financial advice from a practicing accountant/tax specialist. Every case is different.


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## bookbinder (2 Mar 2009)

I am in the same situation where I am a director of a LTd Company that never traded. However, we do have one creditor. We have been dealing with a so called liquidator who is telling us to go for voluntary windup, which we think is not right. We think it should be Creditors Voluntary Liquidation from reading up on it. Also I think we need a better liquidator. Has anyone any recomendations on a good liquidator and how much would it cost roughly? Any info/advice qould be appreciated.


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## simplyjoe (2 Mar 2009)

how come you have a creditor if you have not traded. How much is the creditor?


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## billythefish (2 Mar 2009)

bookbinder said:


> I am in the same situation where I am a director of a LTd Company that never traded. However, we do have one creditor. We have been dealing with a so called liquidator who is telling us to go for voluntary windup, which we think is not right. We think it should be Creditors Voluntary Liquidation from reading up on it. Also I think we need a better liquidator. Has anyone any recomendations on a good liquidator and how much would it cost roughly? Any info/advice qould be appreciated.



bookbinder, i would recommend Friel Stafford for liquidation (www.liquidation.ie). however you may find that liquidation costs actually exceed the amount owed to this creditor.if this is the case, you would be better going for voluntary strike-off and for this i'd recommend . They do it for only about €450 and that includes the cost of the advertisement.


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## bookbinder (2 Mar 2009)

We have a creditor due to getting them involved in the product startup process... 



billythefish said:


> bookbinder, i would recommend Friel Stafford for liquidation (). however you may find that liquidation costs actually exceed the amount owed to this creditor.if this is the case, you would be better going for voluntary strike-off and for this i'd recommend . They do it for only about €450 and that includes the cost of the advertisement.


 
What is the difference between Voluntary strike off & Creditors Voluntary liquidation.  I thought with Voluntary strike-off that we would or could be personally liable to the creditor?


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## simplyjoe (2 Mar 2009)

With voluntary strike off all creditors have to be paid by either the company or by the directors. If you voluntarily wind up the creditor can subsequently follow you for the debt.
Friel Stafford are good. I have a contact in Galway that will do work for a very competitive fee. Do not be put off by the distance. Bar the creditors meeting everything is done by phone, fax, email.


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## simplyjoe (2 Mar 2009)

simplyjoe said:


> Cheapest price for a solvent liquidation assuming all tax returns submitted and all creditors paid, no property, cash only €2k plus vat.
> 
> Cheapest price for a standard insolvent liquidation with no land or buildings €8k plus vat.


 
Client has just paid 5.5k plus vat for simple insolvent liquidation.


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## bookbinder (3 Mar 2009)

simplyjoe said:


> With voluntary strike off all creditors have to be paid by either the company or by the directors. If you voluntarily wind up the creditor can subsequently follow you for the debt.
> Friel Stafford are good. I have a contact in Galway that will do work for a very competitive fee. Do not be put off by the distance. Bar the creditors meeting everything is done by phone, fax, email.


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## bookbinder (3 Mar 2009)

Thanks for all the advice, I will check out Friel Stafford. This LTd companty is a thorn in my side ...will be glad when its finished.


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