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Dissolve a Limited Company

If you are experiencing problems within your business, from debt, HMRC tax arrears or pressure from creditors, we can help you today.

Dissolving a limited company, known as a voluntary company strike off or winding up, is a cost-effective and simple way to close companies that are no longer trading.

If your company is effectively dormant and has served its purpose, then voluntarily striking it off the Companies House register is an attractive option for closure.

We have years of experience dealing with company dissolutions meaning you can be confident of leaving the process in our hands, without the worry of dealing with Companies House or complex procedures.

Our dissolution process is stress-free. We will:

  • Change your business address from the outset and deal with all creditor correspondence.
  • Complete necessary forms on your behalf and notify HMRC.
  • Keep you fully informed throughout until we reach dissolution.

We have a clear, proven, six-step process for striking your company off that we can talk through with you. You’ll be kept fully informed and can contact the Future Strategy team every step of the way.

We also guarantee to strike off your limited company for a fixed fee, simply contact us for a quote to find out more.

Why dissolve a limited company?

Companies which are no longer active and unlikely to be required in the future usually best dealt with through a dissolution.

You may be preparing to retire, want to free up assets from an existing company to fund a new venture, or want to close a subsidiary company that no longer has a practical function.

Or it simply might be the business may not be working out as you’d hoped. Maybe it’s not as profitable as you had planned, or your fellow directors might not share your vision for the future.

It may be that your limited company has never traded – perhaps you started your business and restrictions put in place due to the coronavirus pandemic in 2020/2021 meant you were unable to trade.

We can close your company through dissolution and strike you off the Companies House register if:

  • The company hasn’t traded in three months or sold any stock.
  • Hasn’t changed names in three months.
  • It isn’t threatened with liquidation and has no agreements in place with creditors.

Advantages of dissolving a limited company

  • It is the quickest method of closing a company. Once a company is dormant, then the process of strike-off is not time-consuming.
  • The process is much cheaper than liquidation. 
  • There’s no investigation into the director’s conduct. That means there’s no risk of directors being made personally liable for business debts or being disqualified from acting as directors in the future. This will only be the case if the company is restored by a creditor and a winding-up petition is issued.
  • No requirement to file annual returns and accounts. If the company is simply left dormant, accounts and returns will still need to be filed.

There are disadvantages to consider, and we can talk you through these so you can decide the best option for your business. They include the possibility of creditors objecting to the application, the fact that outstanding debts cannot be written off, and there is no prescribed process for the distribution of assets to creditors.

Voluntary strike-offs are the common and most efficient method business owners usually use when closing a company. However, they still tend to be complex affairs that require expert knowledge to navigate. At Future Strategy, we can supply that knowledge and reassurance.

How dissolving a limited company works

The process of dissolving your company begins with paying off any creditors, disposing of assets, and closing the bank account. The company must be solvent in order to be dissolved and it cannot be trading.

HMRC must be informed and a DS01 form submitted to Companies House and anyone who could be affected within seven days should be notified, including members, creditors still to be paid, employees, pension fund managers and/or trustees.

If no objection is received in 90 days, the company is dissolved.

The process broadly follows these steps:

  • A board meeting is held to pass a resolution in writing to apply to close the company.
  • Directors sign the application.
  • All employees and creditors must be notified of the application.
  • An application is then made using a DS01 form.

Our six-step process to dissolving your limited company

Future Strategy has spent years refining the process of dissolving limited companies so the experience is as stress-free as possible for our clients.

We believe in transparent communication at all times and will keep you updated throughout the process. Our team are easily accessible and will take you through these six steps:

  1. Agreement and identification
    You can trust us 100% with the closure of your business.  Future Strategy Limited is fully authorised and regulated by the Financial Conduct Authority (FCA).  All we need to get started is for you to digitally sign our agreement, make a payment and send us some identification.
  2. Change your business address
    For your peace of mind, and where suitable, we change the registered address of your business to the registered address of Future Strategy. This takes the pressure off you and you won’t have to worry about receiving stressful letters from creditors. Any post you do receive can be sent to us.
  3. File a Statement of Affairs (SoA) 
    This is a critically important document within the dissolution process.  It summarises all of your company’s assets and liabilities for the current situation.  It is essential that this is done accurately to ensure your company is closed successfully. Our experienced team will compile the SoA on your behalf.
  4. Notify creditors and HMRC
    You are legally obliged to let all creditors and HMRC know that you intend to cease trading.  This can be a time-consuming, potentially awkward, and complicated process so we compose and send these letters on your behalf.  We also submit an application to close your company (DS01) to Companies House.
  5. Deal with all creditor correspondence
    Dealing with creditors can be both stressful and worrying. We take the stress away and ensure that all creditor queries are dealt with in the most appropriate way throughout the process.  We have a 100% success rate in closing limited companies.
  6. Your company is successfully dissolved
    Following our application, your company will be dissolved and removed from the Companies House register.

Each step is communicated clearly by our in-house case management team, with the goal of reaching dissolution within 90 days.

If you’d like to find out more about the process, you can get in touch with the Future Strategy team for a free and confidential consultation.

Our company dissolution checklist

As we work through the dissolution process, we make our way through a checklist with you to make sure we can reach dissolution quickly and effectively. These points include:

  • Paying staff their final wage or making them redundant. Be sure to take advice on the rules here, particularly with redundancy.
  • Complete all outstanding work and collecting any fees due.
  • Sell any company assets, distributing proceeds among shareholders.
  • Bring all utilities to an end.
  • Transfer website domains.
  • Prepare final company accounts and tax returns and send them to HMRC and Companies House, informing them that you wish to close the company in a letter signed by directors.
  • Pay HMRC any tax due. For example, VAT, Corporation Tax, PAYE and NI.
  • Ask HMRC to close your payroll.
  • Deregister for VAT.
  • Close company bank accounts.
  • There may be other obligations you have to meet when closing a company depending on the type of business you operate. These are best discussed with experts such as ourselves.

 

We can talk you through all of your options and find you the right solution

We're always here to help.

For free, immediate and confidential advice about closing a company, please contact us.