Company dissolution is a quick and easy way of closing a company down. It involves the director(s) making a voluntary application to Companies House to strike off the company from the public register. Once the strike off application has been accepted, the company is usually dissolved within 2-3 months.
There are several reasons to voluntarily strike off your company:
The company is no longer required, or it has served its purpose
To save on administration costs of running a company, e.g. preparing annual accounts
Avoiding fines or prosecution due to late filings
To reduce the liability of directors
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You will receive your board resolution by email within 3 to 5 working hours - simply sign and store it for safekeeping
The director(s) will receive an invitation by email from Companies House to electronically sign the dissolution application (known as the ‘DS01’) - simply sign and submit
We will file the dissolution application at Companies House
Once the application to dissolve has been accepted, we will inform you by email
Within 2-3 months, Companies House will inform you by letter to your registered office when the company is dissolved
You will receive your resolution and DS01 form by email within 3-5 working hours. Once you have signed everything and Companies House has accepted the application, it will usually take 2-3 months for the process to be completed and your company to be dissolved.
In general terms, all tax that is owed must be paid before the application to strike off the company is submitted. Failure to do so may lead to HMRC objecting to the dissolution, causing the application to be suspended until outstanding payments are settled.
The director(s) of the company has an important legal responsibility to inform the ‘notifiable parties’ that an application to strike off has been made. ‘Notifiable parties’ include creditors, shareholders, employees, and other directors of the company who did not sign the dissolution application. This should be done within 7 days of the dissolution application being made.
The decision to voluntarily dissolve a company is made by the company’s director(s). The decision is made either at a board meeting or by signing a board resolution. The power of the directors to dissolve the company is provided by sections 1003 to 1011 of the Companies Act 2006.