Phoenix Company Advice in Somerset

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

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

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

What Is a Phoenix Company in Somerset?

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

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

Is It Legal to Start a Phoenix Company in Somerset?

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

What Are the Legal Restrictions in Somerset?

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

How Can I Reuse the Company Name Legally in Somerset?

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

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

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

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

Can I Keep My Staff and Clients in Somerset?

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

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

Will Creditors Be Notified in Somerset?

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 Somerset.

This ensures transparency and protects creditors from deception in Somerset.

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

The assets in Somerset 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 Somerset.

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

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

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

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

The typical process in Somerset includes:

1. Entering a formal liquidation (CVL) in Somerset

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

3. Setting up a new company in Somerset

4. Transferring staff and operations in Somerset

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

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

Does HMRC Allow Phoenix Companies in Somerset?

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

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

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

If your company was forcibly wound up in Somerset 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 Somerset.

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

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

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

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

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

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

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

Get Expert Phoenix Company Advice Today in Somerset

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

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

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

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