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Dissolving a Company: Everything You Need to Know


2021-07-04


Process of Dissolving a Company

 

To begin the dissolution process, you must first submit a striking off application. If no one objects to the dissolution, the business will be “struck off” from the register within three months if no one objects. However, in order for the process to be complete, first, the firm must fit the criteria set by Companies House which we’ve explained below.

Eligibility for Dissolving Company

 

If the corporation decides to shut down, it simply can’t do so without meeting the following criteria;

·       The firm hasn't traded in three months

 

·       The name of the company hasn't changed in three months

 

·       There are no current or planned legal actions against the firm

 

·        There hasn't been a sale of property or rights for a fair price.

 

If the company fits this criterion, the following members must be informed beforehand.

·        Shareholders

 

·        Creditors

 

·        Employees (Final wage/salary must be paid and HRMC must be informed that your company has stopped employing staff.)

 

·        Directors

 

Note: If you do not complete this process the right way, you will face a fair and possible prosecution.

Companies House form DS01 is required to apply to strike off your limited business. A majority of the company's directors must sign the document. Before applying, you should deal with any of the company's assets, such as closing any bank accounts and transferring any domain names.

What Happens when the Company is dissolved?

 

When a limited company is dissolved, all publicly available information is kept for 20 years on the Companies House public record. Dissolved business data older than six years are not available on the free Companies House Service, although they can be found on other search engines.

Can Companies House Dissolve a Company?

 

The short answer to this question is yes. However, Companies House only dissolves a company based on legit reasoning. For example, compulsory strike off is a procedure in which a third party, such as Companies House, petitions for the business to be struck off the register, usually for non-compliance. This might involve the following: If you don't submit your yearly confirmation statement, you'll be fined (Form CS01) Failure to file accounts in a timely manner.