Phoenix Company Advice in Edinburgh
Get in touchAt Fast Insolvency, we provide clear, compliant guidance on forming a phoenix company in Edinburgh, 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 Edinburgh.
We protect directors from liability while helping you start fresh with a viable new business in Edinburgh.
Contact us today in Edinburgh for free advice on phoenix company formation and to avoid the legal risks of getting it wrong.
What Is a Phoenix Company in Edinburgh?
A phoenix company is a new business that is formed after an insolvent company has been liquidated in Edinburgh.
It often has the same directors, staff, and assets, but operates as a legally separate entity with a different name or structure in Edinburgh.
Is It Legal to Start a Phoenix Company in Edinburgh?
Yes, forming a phoenix company is legal in the UK in Edinburgh, 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 Edinburgh.
What Are the Legal Restrictions in Edinburgh?
Under Section 216 of the Insolvency Act 1986 in Edinburgh, 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 Edinburgh for the new company’s debts and even criminal penalties.
How Can I Reuse the Company Name Legally in Edinburgh?
You can apply for a Section 216 exemption in Edinburgh if:
You buy the old company’s assets from a licensed insolvency practitioner in Edinburgh
You notify all creditors and file the correct forms with the court and Companies House within 28 days in Edinburgh
We can handle this entire process for you to ensure compliance in Edinburgh.
Can I Keep My Staff and Clients in Edinburgh?
A phoenix company in Edinburgh can often retain key contracts, client relationships, and employees from the old business.
Transferring staff must follow TUPE regulations in Edinburgh to protect employment rights.
Will Creditors Be Notified in Edinburgh?
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 Edinburgh.
This ensures transparency and protects creditors from deception in Edinburgh.
Can I Buy the Assets from the Old Company in Edinburgh?
The assets in Edinburgh 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 Edinburgh.
What Are the Risks of Forming a Phoenix Company in Edinburgh?
If the rules are not followed correctly, you could be held personally liable for new company debts or be disqualified as a director in Edinburgh.
There may also be reputational damage in Edinburgh if the new company appears to evade the old one’s obligations.
What Is the Process for Creating a Phoenix Company in Edinburgh?
The typical process in Edinburgh includes:
Entering a formal liquidation (CVL) in Edinburgh
Valuing and selling the old company’s assets in Edinburgh
Setting up a new company in Edinburgh
Transferring staff and operations in Edinburgh
Filing all legal notices and exemption forms under Section 216 in Edinburgh
We manage this process end-to-end to ensure full compliance in Edinburgh.
Does HMRC Allow Phoenix Companies in Edinburgh?
HMRC permits in Edinburgh the formation of phoenix companies, but they monitor closely for misuse.
You must remain fully compliant in Edinburgh with tax obligations in the new business.
Can I Form a Phoenix Company After Compulsory Liquidation in Edinburgh?
If your company was forcibly wound up in Edinburgh 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 Edinburgh.
What If I Want to Use a Completely New Name in Edinburgh?
If the new company name is not the same or similar in Edinburgh, Section 216 restrictions do not apply.
However, you still need to ensure that no misleading links exist in Edinburgh between the old and new businesses.
How Much Does It Cost to Set Up a Phoenix Company in Edinburgh?
A CVL in Edinburgh costs from £3,000–£5,000 in Edinburgh, plus legal fees for name reuse applications if needed.
The cost in Edinburgh depends on whether you’re purchasing assets and the complexity of the liquidation.
We offer fixed-fee packages in Edinburgh that include full phoenix company advice and compliance.
Get Expert Phoenix Company Advice Today in Edinburgh
If you're closing an insolvent company in Edinburgh and want to continue trading, legal guidance is essential.
We offer low-cost, legally compliant phoenix company services in Edinburgh with expert oversight.
Contact Fast Insolvency now for free, confidential advice on forming a phoenix company safely and lawfully in Edinburgh.
We cover Edinburgh