Striking Off Company: A Guide to Closing a Company

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If you’re a business owner who wants to close your company, it’s important to know the process of striking off a company. Striking off a company is the process of removing a company’s name from the Companies Register maintained by the Companies House. The process of Strike Off Company is not as complicated as winding up a company, which involves appointing a liquidator to oversee the distribution of the company’s assets to creditors. In this article, we will explain the process of striking off a company, the requirements, and the things you need to consider before taking this step.

What is Striking Off Company?

Striking off a company is a procedure by which a company can be removed from the official Companies Register and dissolved without going through a formal liquidation process. This process is also known as voluntary dissolution. The process of striking off a company is a straightforward way to close a company if it has ceased trading, has no debts, or has not traded for at least three months.

Reasons for Strike Off Company

There are various reasons why a business owner may decide to strike off their company. Some of the most common reasons include:

  • The company is no longer trading
  • The company is no longer needed
  • The company has no debts or liabilities
  • The director wants to retire and does not want to sell the business

Requirements for Striking Off Company

To strike off a company, you must meet the following requirements:

  • The company must not have traded for at least three months
  • The company must not have changed its name in the past three months
  • The company must not have any outstanding debts
  • The company must not be involved in any legal proceedings
  • All directors and shareholders must agree to the striking off

How to Strike Off Company

The process of striking off a company involves completing several steps. Here are the steps to follow:

Step 1: Informing Shareholders and Directors

The first step is to inform all shareholders and directors of the company’s intention to strike off. You should hold a meeting to discuss the matter and obtain agreement from all parties.

Step 2: Cease Trading

Before you can begin the process of striking off a company, you must stop trading. You should close all bank accounts and inform any customers or suppliers that the company is no longer trading.

Step 3: Settle Any Debts

You must settle any debts before striking off the company. This includes paying all outstanding bills, taxes, and other financial obligations.

Step 4: File Form DS01

Once all debts have been settled, you must complete Form DS01, which is available on the Companies House website. This form notifies the Companies House of your intention to strike off the company.

Step 5: Wait for Confirmation

After you have filed Form DS01, the Companies House will place a notice in the Gazette stating that the company will be struck off in two months unless any objections are raised. If there are no objections within two months, the company will be struck off.

Step 6: Final Accounts and Tax Returns

Before your company can be struck off, you must submit final accounts and tax returns to HM Revenue and Customs (HMRC).

FAQs

Q: Can a company be struck off if it owes money to creditors?

A: No, a company cannot be struck off if it owes money to creditors.

Q: How long does it take to strike off a company?

A: It takes at least two months to strike off a company.

Q: Can I strike off my company if I am a sole trader?

A: No, you cannot strike off a sole trader business.

Q: What happens to the company’s assets?

A: When a company is struck off, any remaining assets will be transferred to the Crown. However, if there are any assets that belong to a shareholder, they can be distributed before the company is Struck Off

Q: Can I reverse the decision to strike off a company?

A: Yes, you can apply to have the company restored to the Companies Register within six years of it being struck off.

Things to Consider Before Striking Off Company

Before deciding to strike off your company, there are a few things you need to consider:

  • Make sure the company has stopped trading for at least three months
  • Ensure all debts and obligations have been settled
  • Notify all shareholders and directors of your intention to strike off the company
  • Submit all final accounts and tax returns to HMRC
  • Be aware that striking off a company may have implications for any employees or customers

Conclusion

In conclusion, striking off a company is a straightforward way to close a company if it has ceased trading and has no outstanding debts or legal proceedings. However, there are certain requirements and procedures that must be followed, and it is important to ensure all obligations have been settled before beginning the process. If you are unsure about whether striking off your company is the right decision, you should seek professional advice.

Microvista's platform is a useful resource for businesses seeking to identify deregistered companies in India. With its extensive and regularly updated database, businesses can make well-informed decisions and safeguard themselves against potential risks. To learn more, visit Microvista's website at https://www.microvistatech.com/struck-off-companies.aspx.

Location: India

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