Our support and services for companies who are considering closing
A company dissolution is otherwise known as 'dissolving the business' or a 'company strike off.' Once your company has been dissolved or struck off, the company no longer legally exists.
This activity was put into place for directors to close down their limited company where a business has no debts or liabilities.
Can I dissolve my business?
When dissolving your business, there are strict criteria’s your business must meet before you can strike your business off:
- Your business must have ceased trading for a minimum period of 3 months
- Not sold off any stock in the last three months
- Not be threatened with Liquidation or any other insolvency proceedings
- Not have any formal arrangements in place with creditors such as a Company Voluntary Arrangement
Do I need a licensed insolvency Practitioner to help me dissolve my business?
The quick answer is No.
Dissolving your business, providing it meets the criteria set out, can be straight forward and can be done by the director(s) and or shareholders of the company.
All you need to do is complete and submit a DS01 form that must be signed by the majority of directors; basically, the majority of shareholders must be in favor of closing down the business.
Once the form has been complete, it must be sent to companies’ house, and subsequent copies must be forwarded to creditors, employees, and shareholders. There is online access to complete the process; once done, a notice will go in the London gazette.
Creditors can object to a company being struct-off; more often than not, it is because there are outstanding commitments with no intention or effort made to repay debts.
Should your application be rejected for a strike-off due to the business having outstanding debts and liabilities, we would urge you to speak with one of our specialists.
There are many reasons why you, as the director(s) and or shareholders, may wish to retract your application to dissolve the business. As a director(s) you must complete the DS02 form in the event of:
- The company starts to trade
- The company name is changed
- The company is made insolvent
- Disadvantages behind dissolving your business
Should a business be struck-off under the understanding that no liabilities are outstanding, a creditor can reinstate the company and pursue the business & director(s) for the full balance.
Company Money Worries are here to guide and support your business and whether a Voluntary Liquidation is right for your business.
Take advantage of our free support.
Get in touch
Fill out the form below and someone will be in touch