Phoenix Company Advice in Cheshire

At Fast Insolvency, we provide clear, compliant guidance on forming a phoenix company in Cheshire, a new business that rises from the closure of an insolvent company.

This route allows directors to start fresh, retain viable parts of the old business, and protect jobs, but strict rules apply under UK insolvency law in Cheshire.

We protect directors from liability while helping you start fresh with a viable new business in Cheshire.

Contact us today in Cheshire for free advice on phoenix company formation and to avoid the legal risks of getting it wrong.

What Is a Phoenix Company in Cheshire?

A phoenix company is a new business that is formed after an insolvent company has been liquidated in Cheshire.

It often has the same directors, staff, and assets, but operates as a legally separate entity with a different name or structure in Cheshire.

Is It Legal to Start a Phoenix Company in Cheshire?

Yes, forming a phoenix company is legal in the UK in Cheshire, as long as it follows the rules under the Insolvency Act 1986.

The process must be transparent, and directors must not trade while insolvent or breach restrictions on using the old company name in Cheshire.

What Are the Legal Restrictions in Cheshire?

Under Section 216 of the Insolvency Act 1986 in Cheshire, directors of an insolvent company are prohibited from reusing the same or similar name for 5 years, unless they follow strict exemption procedures.

Breaching this rule can result in personal liability in Cheshire for the new company’s debts and even criminal penalties.

How Can I Reuse the Company Name Legally in Cheshire?

You can apply for a Section 216 exemption in Cheshire if:

• You buy the old company’s assets from a licensed insolvency practitioner in Cheshire

• You notify all creditors and file the correct forms with the court and Companies House within 28 days in Cheshire

We can handle this entire process for you to ensure compliance in Cheshire.

Can I Keep My Staff and Clients in Cheshire?

A phoenix company in Cheshire can often retain key contracts, client relationships, and employees from the old business.

Transferring staff must follow TUPE regulations in Cheshire to protect employment rights.

Will Creditors Be Notified in Cheshire?

All creditors of the liquidated company must be notified if the new company is using a similar name or operating in a similar way in Cheshire.

This ensures transparency and protects creditors from deception in Cheshire.

Can I Buy the Assets from the Old Company in Cheshire?

The assets in Cheshire including stock, equipment, or intellectual property, can be sold to the new company at fair market value by the liquidator.

You cannot transfer assets privately or below market value in Cheshire.

What Are the Risks of Forming a Phoenix Company in Cheshire?

If the rules are not followed correctly, you could be held personally liable for new company debts or be disqualified as a director in Cheshire.

There may also be reputational damage in Cheshire if the new company appears to evade the old one’s obligations.

What Is the Process for Creating a Phoenix Company in Cheshire?

The typical process in Cheshire includes:

1. Entering a formal liquidation (CVL) in Cheshire

2. Valuing and selling the old company’s assets in Cheshire

3. Setting up a new company in Cheshire

4. Transferring staff and operations in Cheshire

5. Filing all legal notices and exemption forms under Section 216 in Cheshire

We manage this process end-to-end to ensure full compliance in Cheshire.

Does HMRC Allow Phoenix Companies in Cheshire?

HMRC permits in Cheshire the formation of phoenix companies, but they monitor closely for misuse.

You must remain fully compliant in Cheshire with tax obligations in the new business.

Can I Form a Phoenix Company After Compulsory Liquidation in Cheshire?

If your company was forcibly wound up in Cheshire through compulsory liquidation, you must still follow the same name reuse restrictions and apply for court permission.

In some cases, HMRC or other creditors may object in Cheshire.

What If I Want to Use a Completely New Name in Cheshire?

If the new company name is not the same or similar in Cheshire, Section 216 restrictions do not apply.

However, you still need to ensure that no misleading links exist in Cheshire between the old and new businesses.

How Much Does It Cost to Set Up a Phoenix Company in Cheshire?

A CVL in Cheshire costs from £3,000–£5,000 in Cheshire, plus legal fees for name reuse applications if needed.

The cost in Cheshire depends on whether you’re purchasing assets and the complexity of the liquidation.

We offer fixed-fee packages in Cheshire that include full phoenix company advice and compliance.

Get Expert Phoenix Company Advice Today in Cheshire

If you're closing an insolvent company in Cheshire and want to continue trading, legal guidance is essential.

We offer low-cost, legally compliant phoenix company services in Cheshire with expert oversight.

Contact Fast Insolvency now for free, confidential advice on forming a phoenix company safely and lawfully in Cheshire.

Get in touch