Phoenix Company Advice in Durham

At Fast Insolvency, we provide clear, compliant guidance on forming a phoenix company in Durham, 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 Durham.

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

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

What Is a Phoenix Company in Durham?

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

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

Is It Legal to Start a Phoenix Company in Durham?

Yes, forming a phoenix company is legal in the UK in Durham, 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 Durham.

What Are the Legal Restrictions in Durham?

Under Section 216 of the Insolvency Act 1986 in Durham, 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 Durham for the new company’s debts and even criminal penalties.

How Can I Reuse the Company Name Legally in Durham?

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

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

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

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

Can I Keep My Staff and Clients in Durham?

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

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

Will Creditors Be Notified in Durham?

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 Durham.

This ensures transparency and protects creditors from deception in Durham.

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

The assets in Durham 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 Durham.

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

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

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

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

The typical process in Durham includes:

1. Entering a formal liquidation (CVL) in Durham

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

3. Setting up a new company in Durham

4. Transferring staff and operations in Durham

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

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

Does HMRC Allow Phoenix Companies in Durham?

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

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

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

If your company was forcibly wound up in Durham 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 Durham.

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

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

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

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

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

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

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

Get Expert Phoenix Company Advice Today in Durham

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

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

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

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