If you are a director looking to dissolve your limited company, you will need to strike it off the Companies House register. Although it may sound complex, the process is fairly straightforward, with just a few simple steps to follow.
This short guide will discuss company strike-off in its entirety, answering some all-important questions – What does strike-off mean? How do you prepare your company for closure? What is a DS01 form?
What Does Strike Off Mean?
A company strike-off is the term used to describe removing your limited company from the Companies House register. Once your company has been struck off the register, legally, it will no longer exist. You can strike off your company voluntarily, which you can learn more about online.
If you do not voluntarily strike off your company, you may be requested to undergo a compulsory strike-off. This means another party has petitioned to have your company struck off the register. Usually, the other party that has requested this will be Companies House.
Prepare Your Company For Closure
Before your limited company is struck off the Companies House register, you must pay off any outstanding debts that the business has. The debt must be paid in full. For some directors, this can be a daunting thought. However, there are things you can do to help.
Start by listing your debts in order of priority. Pay off the ones that have the highest interest rates first to help you avoid any additional fees. Start selling some of the company’s assets that you no longer need to help you fund this. If you are in a difficult financial situation, it is recommended that you consult with a financial advisor to help you.
Acquire a DS01 Form
To strike your limited company off the Companies House register, you must send a DS01 form. If you are questioning – what is a DS01 form? We are here to help. A DS01 form means you are voluntarily dissolving your limited company. It needs to be signed by the company directors, and any remaining assets must be dealt with before closing the company.
If you have any questions regarding where you got the form from and how much it costs, take a look at this helpful info from Future Strategy. Their article discusses what a DS01 form is in more detail and gives you guidance on the information you need to include in the form.
Wait for Confirmation from Companies House
Once your form is submitted, you must wait for a response to determine whether you have filled it incorrectly. If correct, you will receive a letter from Companies House, and your company will be struck off the register once two months have passed by. A notice will also be posted in your local gazette to declare that the company has been dissolved.
Dissolving a company can put a financial strain on some directors. To ensure that you do not get yourself into a difficult financial situation, it is recommended that you learn how to budget your money moving forward. Use the internet to your advantage as there is plenty of money-saving advice out there.