Complete or formally hand over all client engagements
Issue written notice to all clients that the company is ceasing to operate, in compliance with any contractual notice periods. Complete outstanding deliverables or arrange a formal handover to another firm. Obtain written acknowledgements from clients confirming the engagement is concluded. Outstanding client obligations at the point of dissolution could expose directors to personal liability.
Arrange professional indemnity run-off cover
Professional indemnity (PI) insurance covers claims arising from past advice or services, even after the company closes. Standard PI policies lapse on dissolution. Arrange run-off cover — typically for two to six years — to protect against future claims relating to work carried out while the company was active. The required run-off period varies by profession: solicitors regulated by the SRA must maintain six years of run-off cover.
Transfer or securely delete all client data (GDPR)
As a data controller, your company must handle all personal data in compliance with UK GDPR on closure. Either transfer client data to the client or another processor with the client's consent, or securely delete it in accordance with your privacy policy and retention schedule. Document the deletion process and retain evidence of compliance. If registered with the ICO, notify them of the closure.
Surrender professional licences and notify regulators
Notify any relevant professional regulatory body of the company's closure. Examples include the SRA (solicitors), ICAEW or ACCA (accountants), FCA (financial advisers), RICS (surveyors), and CIPD (HR consultants). Surrender any firm-level licences, authorisations, or accreditations. Failure to notify regulators can result in disciplinary action against individual directors who are also regulated professionals.
Archive client files in line with regulatory requirements
Most regulated professions require client files to be retained for a minimum period after the engagement ends — often six years, though some professions require longer. Ensure files are archived securely (physically or digitally) and that clients know how to retrieve their records. Document your file retention and destruction schedule before dissolution.