Companies on register hits new high
The total number of companies registered in the UK surpassed 4 million for the first time ever in March 2018. Private companies account for a massive 92.8% of companies registered. Dissolutions are also on the up with over 100,000 companies dissolving every quarter since 2016, and an additional 20,000 being dissolved in the first quarter of 2018 compared to the same time 2017.
Average age of companies
The average age of companies on the register is declining. Companies House report that the average age of companies on the register in 2016/2017 was 8.3 years down from 10.7 years in 2000. More than 50% are less than 5 years age. Technology has considerably sped up the process of setting up new companies at a relatively low cost.
The dissolution numbers spiked in the first quarter of 2016 following a change in legislation which cut the processing time of voluntary and compulsory liquidations by one month.
The process for dissolving a company is explained simply on gov.co.uk, click here for more information. Dissolution is only applicable to companies who:
- Have not traded or changed names in the past 3 months.
- Are not threatened by liquidation
- Have payment agreements with creditors.
The process for closing down a company and applying for it to be struck off again is explained here.
However if your company has debts outstanding, particularly those with monies owed to HMRC, it is likely that any attempt to strike off your company will be blocked.
Voluntary Liquidation Made Simple
Changes to insolvency rules in 2017 have also made it quicker and easier to wind up private limited companies. New decision processes now allow for virtual meetings of creditors instead of physical meetings. As an alternative approval from shareholders and creditors can be obtained by the “Deemed Consent” (simple yes or no to resolutions to wind up and appoint a liquidator).
These new processes are outlined in more detail in our blog “Are creditors’ meetings a thing of the past”. The Business Debt Advisor have a quick and economical process for winding up limited companies with debt and little in the way of assets. For more information, call our Business Debt Advisor team on 03339999689 or e-mail the team at email@example.com