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