Under certain circumstances, it is possible to apply to Companies House to simply strike off and dissolve a Limited Company.
A company or limited liability partnership (LLP) may apply to be struck off the Companies House register for a variety of reasons:
- The owners of the company may wish to retire and there is no one to take over from them
- The company may no longer be trading or is a non-trading subsidiary of a larger group
- There is no market for the company’s services/product
An application to strike off your company is only appropriate if:
- It has no outstanding liabilities
- It has not traded in the last three months
- It has not changed its name in the last three months
- There are no pending insolvency proceedings against the company
- It has no agreements with creditors, e.g. a Company Voluntary Arrangement (CVA)
Once the application is made, Companies House will register the information and put it on the company’s public record. The application will then be advertised in the London Gazette. In theory, this is to allow interested parties the opportunity to object or complain.
The application to strike off also has to be sent to all interested parties, including members, creditors and employees within seven days of the application being made.
Unless there is a reason to delay (e.g. because of objections) Companies House will strike the company off the register not less than three months after the date of the notice in the Gazette. The company will be dissolved on publication of a further such notice.
However, there are consequences to dissolution:
- Any assets (including capital) remaining in the company at the date of dissolution become bona vacantia. This means that the shareholders no longer have a right to them and instead they become the property of the Crown
- The company can be restored back to the Register at any time in the 20 years following dissolution
- Improper application for striking off can result in a fine of £5,000, up to seven years imprisonment and disqualification from acting as a director for up to 15 years
To discuss Voluntary Strike Off and Dissolution please contact Dunion & Co today by calling 01782 828 733 or e-mailing us at email@example.com.