Starting a company and becoming a director of your own business is a dream for many. However, sometimes a company cannot survive and does not achieve the desired result that was hoped for by its owners. In some instances, owners may have to take the executive decision to end the business and move onto a new project.
Once a company is incorporated it is viewed as a separate legal entity, and when the members have decided to let the company wind up voluntarily, a few procedures must occur to execute this decision. To strike off or dissolve a limited company, it must be requested with Companies House to remove the company from its registrar. Once this is achieved, the company will no longer exist.
Although the result might be the same, the process is certainly not; liquidation and dissolution is not the same thing. A strike-off can only take place if this decision is made voluntarily. Liquidation and dissolution mean that the company is no longer able to pay off its debt, therefore, have no choice but to close down. This process can be extensive and complex compared to a strike-off.
Certain aspects would need to be considered to begin the strike-off process, such as making sure that your limited company has not traded within the last three months and as mentioned above it should not be in dealings with any insolvency proceedings. It is advised to seek the assistance of a professional or expert as there are procedures that must be handled with care before burying your company and calling it a day.
If you change your mind about striking off your company, you can do so within the three month notice period. However, once Companies House has given the final notice, this process cannot be stopped. On the contrary, if a company has been struck off due to overdue accounts or confirmation statements the company can also be restored.
More Group is a professional accountancy firm that can assist with all Companies House and HMRC correspondence to help eliminate most features of the stressful situation of strike-off and restoration. There will also be some dealings with HMRC that will go hand in hand such as informing them about deregistering the VAT, payroll schemes and if it were a trading company, certain accounts would need to be filed.
Note: The information should not be construed as legal or other advice as it designed as an information source only © More Group 2018. All rights reserved.