How to close a limited company

There are several ways to close down a limited company, the best one for your business depends on its financial situation and what you want to achieve as part of the closure.

• If there are no debts – If your company is solvent you can have it dissolved through the strike off process. Dissolving your company means requesting its name to be removed from the register held at Companies House. This is done by completing the DS01 form and paying the fee, currently ￡10.00. A notice of your intention to strike off your company will be placed in your local Gazette. Following a period of two months, your company will be struck off and will cease to exist.

During this two month period, anyone can object to the striking off application and ask Companies House to keep your company active. This is likely to be the action taken if you have any outstanding creditors. Once your company is struck off the register it no longer exists, and consequently cannot be chased for any money it owes. It is therefore in a creditor’s interest to ensure your company remains active and on the Companies House register. Strike off is only for those companies who do not owe any money. If your company has outstanding debts that it cannot pay, you will have to consider a formal insolvency process instead. You can read the full article by clicking here

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