This means all the potential problems have been ironed out prior to the company actually liquidating. In fact in most cases they end with more money as there is less time (and so costs) involved in handling the situation. There’s obviously a few more steps involved – but the end result is you being able to close your company without the stress.
There are two voluntary liquidation procedures and one compulsory procedure.
Liquidation typically occurs when a limited company has reached a point where, for one reason or another, it has been decided that the business will not continue.
In this case, you might consider liquidating your company; which basically means turning your assets into cash.
The process is usually instigated with a winding up petition which is heard at court.
This procedure is often used as a last resort by disgruntled creditors after failed negotiations.