Have you have decided to close your limited company and started the Strike Off process to remove it from the Companies House register, only to find that your striking-off action request has been denied?
This is a common occurrence and typically happens because you have an outstanding debt that needs to be paid – usually tax or PAYE – leading to HMRC’ suspending’ your Strike Off.
If you have outstanding creditors who stand to lose monies owed should your company be removed from the register, they will have two months from the date your strike-off application is advertised to submit their objection.
If Companies House decides to hold up the objection of your creditors or HMRC, then your strike-off application will be suspended, and your company will remain active.
What is a Company Strike Off?
When a limited company is removed from the Companies House register, it is known as a ‘Strike Off.’ There are two types of strike-offs – a Voluntary Strike Off and a Compulsory Strike Off.
Once a company has been through the Strike Off process, it ceases to exist and cannot trade, make payments or sell assets.
A Voluntary Company Strike Off is different from liquidation and is also known as dissolution. It happens in entirely voluntary circumstances and is a common way of closing a limited company.
To qualify, the company cannot have traded, changed its name, sold assets, or engaged in any activity unless it is for the purpose of striking off in the previous three months.
A company cannot be wound up if it is currently in administration, subject to a scheme of arrangement or CVA, or has a receiver or manager appointed over its property.
Read more about Company Strike Offs.
What are Your Options if Your Compulsory Strike-Off Action has been Suspended?
Submit your application again: You may get lucky, and your application could slip under the net. However, it’s essential to be aware that your company can be restored to the Companies House register later on, should a creditor be able to give a valid reason.
Pay off any creditors and then re-submit your application: If your business doesn’t owe anything, there’s no reason why your new application shouldn’t be accepted. However, going down this route is dependent on the size of the debt and your ability to clear it.
Enter into a formal liquidation procedure: This typically involves carrying out a Creditors Voluntary Liquidation (CVL), during which an Insolvency Practitioner will be appointed to manage the company’s affairs and close it down.
If your compulsory strike-off action has been suspended, whatever you decide. The best solution is to ask the experts.
Here at Future Strategy, we can help you navigate the inevitable complications of letting the process take its course or trying to keep your company trading. So please contact us today to find out more.