There are two routes to closing a company. One is through an insolvency process and the other is called ‘striking off’.

Insolvency involves handing over control of the company to an insolvency practitioner who is then paid out of the company assets to equitably distribute a proportion of remaining assets to anyone owed money.

With striking off, the intention to close the company is posted at Companies House. Creditors and shareholders have the opportunity to object and stop the process. It is a simpler and cheaper process and therefore usually used unless there are likely to be objections.