Company dissolution – otherwise known as striking off, or dissolving your company – can be a relatively cheap and straightforward way to close a solvent business that is no longer trading or no longer feasible. However, it isn’t available to every business. Here we outline the conditional requirements for company dissolution, together with all the steps that you’ll need to go through to ensure that the process is completed properly.
If these conditions are in order, there are several steps that you’ll need to carry out to legally close down the business and dissolve the company:
IMPORTANT NOTE: You will need to keep records of your business documents for 7 years after the company is struck off the register. If you’ve employed people, you must keep the employers liability insurance policy for 40 years from the date of the company dissolution.
Companies House will be in touch when it receives the DS01 form and if everything is in order, you will receive written acknowledgement. Companies House will advertise the request to strike the company off in the London Gazette. This will have a 2 month notice period attached to it
You are not required to use an insolvency practice when dissolving your company, however some business owners prefer us to oversee the process for them. We charge a flat fee of £900 plus VAT to do this. Feel free to contact us for more information.
Legislation is changing with regards company dissolution. The changes are in relation to circumstances where the dissolution process is used to shut down a company that has remaining debts or liabilities. Under the new changes, directors who dissolve companies with existing liabilities may be held personally, financially liable.
Dissolution may not be appropriate for your business. Our Business Rescue Experts can provide free advice on the next steps for closing your business with an initial informal consultation.
Dissolution appears to be the most appropriate route for your company.
You may in fact benefit from a claim for entrepreneurs relief, if you would like to find out more, our business rescue experts will be happy to advise you on the next steps.