My Last Business Went into Liquidation – Can I Start a New One?

Not all businesses are successes and various business gurus will tell you they had plenty of failures before they became successful entrepreneurs. So, liquidation in itself is not necessarily a big deal but starting a new business should be carefully considered.  

One thing you can do is learn a lot from failure in business. Liquidation can bring a necessary release from an idea that just isn’t working. If a competitor is selling your product cheaper and you can’t compete on price or value, then it is likely your business will fail.  

The law takes this into account and you can set up another company if your previous one has gone into insolvent liquidation. You can also do this anytime as long as you haven’t been disqualified from being a director.  

Even this process can take up to two years and even if you are subsequently deemed to be unfit to act as a company director you could set up a company while waiting for the judgement on your suitability to run a company.  

One important thing to consider is the name of the new company. It shouldn’t mislead people and be different to the name used for the liquidated business.