Close my Nursery Business
Nursery schools play a fundamental role in our children’s education, helping young ones to develop vital early social and learning skills that prepare them for primary school and can set them up for life.
Offering affordability for parents and the quality care that is needed in this setting can be a dilemma for nursery school businesses, however. As costs go up and already tight profit margins are squeezed, nurseries may face serious financial decline.
If this is true for your nursery business, Company Closure can ensure that you close your nursery business in the correct manner, taking account of your legal obligations as a company director.
You can also close your nursery using a liquidation process if it is in good financial health. This can be an excellent choice if you have healthy levels of distributable profits – around £25,000 or more – as it lowers your tax liability.
A further closure option for nurseries exists if retained profits fall below this level, however, and this is an unofficial procedure called voluntary strike-off.
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How do I close my nursery school business via liquidation?
Liquidate my solvent nursery
You can close your solvent nursery via a procedure called Members’ Voluntary Liquidation, or MVL. This process must be carried out by a licensed insolvency practitioner (IP).
The IP sells your business’s assets, or transfers their ownership away from the company – perhaps to yourself or another shareholder – and once all business affairs have been dealt with, distributes the profits according to the company’s articles of association. The company will then be formally closed at Companies House.
Liquidate my insolvent nursery school
If your nursery school has become insolvent you must cease operations and contact a licensed insolvency practitioner for help. You will need to liquidate your business and close it via Creditors’ Voluntary Liquidation (CVL).
The liquidator sells your business assets at auction after having them professionally valued, and the proceeds are distributed to creditors rather than the shareholders, as happens in an MVL. The company is closed permanently when all statutory requirements have been met.
If liquidation is not suitable, how do I close my solvent nursery?
Solvent liquidation is not suitable for all businesses, and you also have the option of company strike-off. This procedure is an informal one and is only appropriate for businesses that can afford to repay all their debts within 12 months.
Voluntary strike-off, also known as company dissolution, results in your company name being removed from the register at Companies House. It is worth noting here the importance of ensuring the company is solvent before trying to close it in this way.
This is because, if any creditors remain, they can have the business restored to the register to claim their money. This could trigger an investigation into your conduct and how the business failed.
Our team at Company Closure will provide the professional guidance you need if you want to close your nursery. We have extensive experience in helping directors to follow the correct procedure and offer free, same-day consultations. Please get in touch to find out more.
25,000+ Company Directors Supported – Partner Led Service
At Company Closure we have a nationwide team of licensed insolvency practitioners and company closure experts here to help you understand your options. Whether your company is solvent or insolvent, there is a closure method out there to suit you.
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