A company tends to exist, till the time it commits the process of voluntary wind up or is legally bound to close its business completely. In relation to company closure, some people confuse the term winding up with liquidation. Winding up of company means either with the self-belief of members or on receiving legal directions, the company ends its business affairs and terminates the company’s obligations with the other world agencies. On the other hand, the dissolution means the winding up of the company without going into all legal formalities but a shortcut way out to close down a company.

While liquidation can be called a special activity of a company, do to either discharge the company’s liabilities or on directions of any legal authority not compulsorily taking the business to an end. In short, liquidation is just selling the business assets and turning them to cash or cash equivalents to fulfil claims of the company’s creditors.

If you are thinking of winding up your company, have any further questions, or you have been issued with a winding up petition, get in touch today.