Selling a company as a sole shareholder
As a sole shareholder and director of a limited company you can sell your business without having to worry about consulting anyone else at any time. But, there are as you may expect, a lot of things to consider along the way.
How to sell your business
Selling a business is not something you are likely to do every day. It is therefore worth taking the time to think it over properly before you begin. Talk to your solicitor and take advice.
If you are going to sell your business you are going to have to make sure that your business is in good shape financially and that you can prove and demonstrate its performance over the last few years. You will also want to give written evidence relating to the businesses and potential future earnings.
To ensure accuracy it is worthwhile instructing your accountant or specialist agent to value your company.
The process of selling your business
To sell your shares you will need to complete a stock transfer form. This will detail the amount of shares and who they are being transferred to including sale price. Be mindful that you may have to pay stamp duty on the sale.
Due diligence when you sell
Whoever is buying your business will want to carry out due diligence enquiries to ensure that they are buying a company that has its affairs in order. They are not simply going to take your word for it. Due diligence can be a lengthy and time-consuming process. So be sure that your files are in a good state.
Once the sale has completed, you will need to inform Companies House that you have sold your business. You will also have to complete a final tax return detailing the companies turnover up to the point at when you sold it.