Dissolving a company, also known as ‘striking-off’ or ‘company dissolution’, is a way of closing down a limited company.
When a company is dissolved although it is no longer active the details remain on the public record at Companies House indefinitely.
To do this you must meet the following criteria:
The company hasn’t traded in the last three months
The company name hasn’t changed in the last three months
There are no ongoing legal proceedings or any proposed against the company
There has not been a disposal for value of property or rights
In order to start the dissolution process you need to complete a striking off application.
If no one comes forward to raise an objection to dissolution then the company will be struck off the register within three months.
Who must you tell?
- Members (usually the shareholders)
- Managers or trustees of any employee pension fund
- Any directors who did not sign the application form If you don't follow the rules, you must tell, you can face a fair and possible prosecution.
If your company employs staff, you must:
- Follow the rules if you make staff redundant
- Pay their final wages or salary
- PAYE and National Insurance (NI)
You'll need to tell HMRC that your company has stopped employing people.
You should ensure that any business assets are shared among the shareholders before the company is struck off.
Anything that's left will go to the Crown - you'll have to restore the company to get anything back.
If you would like more information, please contact our customer engagement team who would be delighted to assist you further.