Why would someone dissolve a company?


My ex-partner is in talks with dissolving her limited company. It’s none of my business I guess, but I’m trying to understand her motives. Why would someone dissolve a limited company, in your opinion?



People dissolve companies for many reasons:

  • To retire
  • To move to a new job as an employee
  • To change the legal structure of their business, e.g. limited by shares to limited by guarantee; limited company to limited liability partnership; limited company to sole trader.
  • The business is not successful enough
  • The company is forced into liquidation
  • The company is insolvent
  • The owner does not enjoy running a limited company

Companies can be dissolved when they are solvent or insolvent, so a dissolved company is not necessarily a business that was closed due to failure.

2 years ago

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