When Can a Company Request to be Struck Off?

A company can request to be removed from the Companies Register (known as being struck off) under specific conditions:

• Dormant or Non-Trading:
• The company must be dormant or non-trading. This means it has not been trading or selling stock in the last three months.
• Additional Conditions:
• The company must not have traded or sold any stock in the last three months. However, it can sell assets like vehicles or property.
• The company must not have changed its name in the last three months.
• The company must not be threatened with liquidation.
• The company must have no agreements with creditors, such as a Company Voluntary Arrangement (CVA).

If the company does not meet these conditions, it cannot be struck off and will need to go through formal liquidation with a licensed insolvency practitioner.

Steps to Legally Close Down a Company

Before applying for a strike off, ensure the company is legally closed by following these steps:

• Announce Plans:
• Inform all interested parties, including HMRC, about the intention to close the company. This includes notifying creditors and any relevant stakeholders.
• Treat Employees Properly:
• Ensure that employees are treated according to legal requirements. This includes settling any outstanding wages and redundancy payments if applicable.
• Deal with Business Assets and Accounts:
• Distribute or sell off the company’s assets and settle any remaining liabilities.
• Ensure that all company accounts are up-to-date and that any taxes owed are settled.

Applying for a Strike Off

• Complete Form DS01:
• To apply for voluntary strike off, complete and submit Form DS01 to Companies House. This form must be signed by the majority of the company’s directors.
• Notify HMRC:
• Notify HMRC of your intention to close the company and ensure that any final tax returns are filed.
• Advertise the Strike Off:
• Companies House will advertise the proposed strike off in the London Gazette. This is to give any interested parties the opportunity to object.
• Final Check:
• Ensure all final legal and financial obligations have been met and that no objections have been raised. If there are no objections, the company will be struck off the register.

Penalties for Non-Compliance

• If a company is struck off but does not meet all legal requirements, it may face penalties or legal action.
• Directors can be held liable for any outstanding debts or improper conduct.

Summary

Removing a company from the Companies Register requires careful adherence to legal and financial obligations. To qualify for voluntary strike off, ensure the company meets the conditions of non-trading, has not changed its name, is not in liquidation, and has no creditor agreements. Properly notify HMRC and handle all business and employee matters before applying for strike off. If the company does not meet these criteria, liquidation with a licensed insolvency practitioner will be necessary.