How much does it Cost to Wind up a Company?
If you are looking to voluntarily wind up your company, the costs differ and apply to separate areas when compared with being wound up by a creditor. To voluntarily wind up a company with debts, you will need to contact a licensed insolvency practitioner such as ourselves and consider a Creditors’ Voluntary Liquidation. Costs for winding up a company voluntarily via a Creditors’ Voluntary Liquidation for a normal company of a standard size, would generally range between £3,500 to £6,000, depending on the amount of work involved.
If you are a creditor and want to apply to the court to wind up a company that owes you money, you are clearly fed up trying of trying to recover the debt and want to liquidate the company to enforce the repayment. The process of issuing a winding up petition can be quite technical and there are some costs involved. For this reason, it is worth considering other options, such as seeking the assistance of a debt specialist, to help you recover the debt.
Costs of Issuing a Winding up Petition
However, if you have exhausted your options and are owed more than £750, you can apply to the court to have the company wound up. The cost of issuing a winding up petition will be in the region of £2,000, so this is certainly a tactic you should reserve for larger debts.
The costs are made up of:
- A court fee – The winding up petition court fee is £1,880. This is made up of £280 court fees and £1,600 petition deposit to manage the liquidation. However, if the company is not wound up (for example, if the debtor pays up or is clearly insolvent) the £1600 petition deposit will be repaid.
- Process server fee – The cost of serving proceedings in England and Wales is £75-£100.
- Company House search fee – £2 to get accurate debtor details from Companies House.
- Advertisement fee – £79.40 plus VAT to advertise the winding up petition in the London Gazette (if required).
If you choose to instruct a solicitor to act on your behalf, you should also factor in an additional cost of between £400 and £800 to issue the petition.
Need help with a Winding Up Petition?
Have you received a Winding Up Petition, or are you looking to issue one? Call Simon Renshaw today and get expert advice on how to handle Winding Up Petitions.