Transferring Your Business Legally

The penalty for a Director under Section 212 for wrongly using the name, or customer list, or assets of an insolvent company to trade as a new company can be huge …sometimes tens of thousands of pounds. It can lead to being made personally responsible for the previous company’s debts.

They may also be disqualified from being a director for up to seven years.

That is why is essential that transferring your business to continue trading as a new company needs to be done legally, carefully, within the rules.

That need not be expensive at all – It’s just a matter of “doing it right“ – so before you liquidate, ask Interco to transfer your goodwill and assets to any new company simply legitimately and affordably.

We Remove Past Liabilities

Our first step will be to manage a trouble free closure of the current company by a Creditors Voluntary Liquidation [CVL]. We act on your behalf to handle claims by HMRC, Landlords, Lenders, Trade Creditors or Customers with unfinished work and pursue bad Debts. We first review company financials to ensure a regular picture and avert personal liabilities and then arrange for our Licensed Insolvency Practitioner to be a helpful proposed Liquidator.

And Retain Your Key Assets…

Before our Insolvency Practitioner puts the present company into Creditors Voluntary Liquidation, or Administration, they will first make a binding legal transfer so that all its trading contracts, rights and physical stocks and assets have been acquired by your new company.

The transfer consideration will comply with insolvency rules and the sum paid will be affordable. To ensure that you are not open to claims that you have acquired the assets at less than their value our Licensed Valuer will provide a market valuation or letter of assurance. Sometimes the sum payable will be purely nominal and already covered by the fees of Liquidation. Where values are higher, we can always arrange payment by instalments. If you wish the Leases of Premises, Vehicles and Equipment can often be assigned to your new company, where not they terminate in the Liquidation with no onwards liability.

Making the Change Seamless to Customers

We help you make the switchover as seamless as possible seamless to Customers by careful re-branding which stays within legal insolvency rules and a marketing strategy that treats the change as positive innovation. Your new company is not burdened with any negative credit references. We continue to assist with all aspects, as needed, until your business is successfully re-trading.

And Completed Safe and Successfully

Unless the transfer of assets and restart of trading are executed correctly and legally, a Director can become personally liable for the debts of the company they have closed, have essential business assets forfeited and new trading halted.

In liaison with our licenced Insolvency Practitioner and Legal colleagues we ensure you avoid such legal pitfalls. We manage a compliant, trouble free, closure of the current company and a legitimate transfer of its assets and goodwill. This frees you to focus on the key task of driving your business relaunch successfully – to renew orders with existing customers, continue, or improve, suppliers and make new sales.