Winding up of a company, is a process where the company’s assets are seized and liquidated (converted into cash) to pay off the company’s debts and liabilities.
It ensures a fair distribution of the company’s assets amongst its stakeholders, and terminates the company’s existence once all its debts and liabilities have been paid off.
Winding up should not be confused with striking off. Striking off is another way of closing a company which is suitable for companies which are not active and do not have any assets or liabilities. If your company is insolvent, it can only be wound up and not struck off.
Wind up services can be grouped into the following: