Can I keep my company name after liquidation?

Keeping your limited company name after liquidation. 

 

The Insolvency Act prohibits a director of a limited company to use the same company name or a similar name for a period of 5 years from the date of liquidation, HOWEVER, there are certain exceptions to this ruling. 

 

• Purchase the business back from the liquidator: 

 

For example. Your company is unable to pay its debts on time and enters insolvency, but as the director, during the insolvency process you can choose to purchase the whole company, or a substantial part of the company, including its’ debts from the liquidator. 

Once the sale agreement has formalised, you must notify all the creditors and place a notice in the London Gazette within 28 days of purchase. 

 

• Seek Court Permission: 

 

You can apply to the court within seven days of the date of liquidation to keep the company name. Directors will need to demonstrate that by using the same name there is no intention to defraud creditors and that they are fully transparent. 

 

• Company with similar name: 

 

If you have been a director of another company with the same or similar name (often a subsidiary company), that has been trading for at least 12 months prior to the liquidation, you may be able to retain the company name. 

 

It is critical to note that there may be severe penalties for those that go against the rules, and it is imperative that directors get proper guidance from a Licenced Insolvency Practitioner. Please seek advice at the earliest opportunity, we are here to help!