You can choose to liquidate your limited company (also called winding up a company).
After liquidation, your company will stop doing business and employing people. The company won't exist once it's been removed (struck off) from the companies register at Companies House.
Liquidating a company means its assets are used to pay off its debts - any money left goes to shareholders.
You'll need to restore your company to claim back money after it's been removed from the register.
There are 2 kinds of voluntary liquidation:
- creditors' voluntary liquidation - you and your shareholders choose to liquidate your company because it can't pay its debts
- members' voluntary liquidation - your company can pay its debts but you want to close it
Your company may be forced into compulsory liquidation if it can't pay its debts.