HowToCloseCompany

Industry guide

How to Close a Contractor Limited Company in the UK

IT contractors and consultants who close their limited companies face a unique set of tasks: transferring intellectual property, checking IR35 obligations, cancelling software subscriptions, and ensuring client data is handled in compliance with GDPR. This guide walks you through every step.

Transfer or assign intellectual property

Any IP created by the company — code, designs, trademarks, or proprietary software — must be formally transferred to a new owner before dissolution. Use a written IP assignment agreement. Assets left in a dissolved company become the property of the Crown.

Complete client handover and check IR35 obligations

Formally end all client engagements with written notice. Provide handover documentation and ensure deliverables are complete. Review any IR35 determinations from the past four years — HMRC may enquire into these after dissolution, so retain records for at least six years.

Transfer domains, hosting, and SaaS accounts

Move any domain names, cloud hosting accounts (AWS, GCP, Azure), GitHub organisations, and SaaS subscriptions out of the company and into your personal name. Cancelling these abruptly could cause data loss or service disruption for clients.

Cancel professional indemnity insurance or arrange run-off cover

Professional indemnity (PI) insurance covers claims arising from past work, even after the company closes. Standard policies expire on dissolution. Arrange 'run-off' cover for a period of at least two to six years to protect against future claims related to completed work.

Delete or transfer client data (GDPR compliance)

As a data controller, your company must securely delete or transfer all personal data belonging to clients and contacts in line with your privacy policy and GDPR obligations. Document your data deletion process and retain evidence that you complied.

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