Phoenix Companies After CVL: What Directors Need to Know
Yes, you can start a new company after a Creditors’ Voluntary Liquidation (CVL), but only if you follow UK insolvency laws. The new company must be legally separate, assets must be purchased at market value, and directors must not reuse the old name without permission. Done correctly, this process is called forming a phoenix company.
What Is a Phoenix Company and How Is It Linked to CVL?
A phoenix company is a new business that continues trading after a previous company has entered liquidation – often through a Creditors’ Voluntary Liquidation (CVL). It might have the same directors, similar branding, and a similar customer base, but it must be a new legal entity.
You can learn more about the legal and ethical definition in our full guide: What is a phoenix company?
How Does a Phoenix Company Emerge After a CVL?
A CVL allows directors to close an insolvent business in a structured way. The insolvency practitioner sells assets, which a new company may purchase, creating a phoenix company. This structure helps preserve viable business elements, but only when all actions are legally and transparently documented.
For an overview of the liquidation process itself, see our company liquidation guide.
Phoenix Company vs Dissolution vs Restarting a Business
| Scenario | Legal? | Involves Liquidation? | Clears HMRC Debts? | Reuse Company Name? |
|---|---|---|---|---|
| Phoenix Company after CVL | ✅ Yes (if compliant) | ✅ Yes | ✅ Often | ❌ Not without permission |
| Voluntary Dissolution (DS01) | ✅ Yes (if solvent) | ❌ No | ❌ No | ✅ Often allowed |
| Close & Start Again | ✅ Yes (if rules followed) | ✅ or ❌ | ✅ Possible in CVL | ❌ Restricted by law |
More?
Free Consultation – advice@andersonbrookes.co.uk or call on 0800 1804 933 our freephone number (including from mobiles).
Key Rules for Directors Restarting After CVL
To legally form a phoenix company:
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Assets must be sold at independently verified market value via an IP
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You must not reuse the previous company name without meeting Section 216 exemptions
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HMRC and creditors must be informed properly
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The new company must be run transparently and independently
The CVL Process
Time Required: We can place a company company into liquidation within 8 days of instruction.
Why Directors Choose Phoenixing After Liquidation
Avoid compulsory liquidation
Preserve staff and goodwill
Continue operations debt-free (except for new liabilities)
Avoid wrongful trading risks
It’s a legal way to start again – not to escape responsibilities.
Need Professional Support?
Anderson Brookes helps directors:
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Manage liquidations
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Stay compliant with Section 216
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Communicate with creditors and HMRC
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Avoid future risk
We also support businesses during and after voluntary liquidation to assess recovery options.
📞 0800 1804 933 | 📧 advice@andersonbrookes.co.uk
Request your free consultation today.
Anderson Brookes Offers Expert Liquidation Guidance
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