Closing Contractor Limited Company

[Wanderer]

Companies House back up that closing a company midway through a contract is not advisable, as is closing it on a Friday and opening it on a Monday - you need to have ceased trading 3 months.

As far as I can see, there is absolutely nothing to stop a director deciding that his company is going to cease trading today, terminate the company's contracts and start tomorrow with a new company and a new contract with the same client (let's presume for a moment that the client have agreed to terminate and re-issue the contract).

What companies house are rightly pointing out is that you cannot just can't close and dissolve your company overnight, it has to have ceased trading for 3 months (other than business related to the winding up of the company). In the scenario above, the director would therefore be the director of two companies for a few months while they went though the business of winding up the old one , paying off creditors, filing the company accounts etc.

Simples.