If your company has ceased trading for a period of over 3 months, you can begin the process of closing off your limited company, provided that all conditions are met discussed below.
- There must have been no business carried out by the company during this time
- You must not have changed your company’s name
- Your company must not be undergoing any legal proceedings
- Company directors must not have carried out any other business actions during this period, with the exception of the striking off applications
- Outstanding debts can be settled during this 3 month period
- You can view all of the conditions which must be met in order to close a limited company in Sections 1004-05 of the Companies Act 2006.
How to start the applications process
The first step that should be taken is to complete and submit form DS01 to Companies House. There is a processing £10 fee for this.
Who to inform when closing a limited company
The company director(s) must inform the following people within seven days of submitting form DS01 to Companies House:
- Non signatory directors
- Company pension fund managers
Company directors must also inform the following parties that the company is going to be wound up, before starting the application process:
- Supply chain
- Web hosts and domain name registrar
- Other related organisations
After the application has been received by Companies House
Once the application has been approved, Companies House will post a notice for public record in the local Gazette – Edinburgh, London or Belfast. During the following 3 months, as long as there are no objections to the company’s dissolution, it will be wound up.
Involuntary company closure
Under certain conditions, Companies House can force a company to close. This may be if the company does not meet statutory obligations, for example failing to submit company accounts or all directors have resigned from their positions
Before dissolving the company, Companies House will write to the company’s registered address several times in an attempt to make contact with the directors. A notice will also be posted in the Edinburgh, London or Belfast Gazette.
Get in touch
If you have any queries at all, please contact Mark on 01259 721156 or email email@example.com.