Using DS01 Form To Strike Off A Company (2022)

This guide is for anyone with a company who is considering using a DS01 Form to strike off a company.

In this article you’ll learn about:

  • What the DS01 Form is.
  • The process of using a DS01 Form.
  • When you cannot use the DS01 Form.
  • Why a creditor might object to the use of form DS01.
  • Consequences of incorrectly using DS01 Form.
  • Alternatives to using Form DS01 to close a company.

Let’s get started.

using ds01 form to strike off a company

What Is A DS01 Form?

A DS01 Form is a document that can be used by a Limited company Director to strike a company off from the register at Companies House.

The DS01 Form is a document that provided a company Director complies with its requirements can be used for a relatively low fee. It costs £8 to file the DS01 Form online and £10 to submit a paper copy.

It is a process that can be used to end a company’s existence and close it down.

When You Can And Can’t Use DS01 Form To Strike Off A Company

There are times when you can and cannot use the DS01 Form to strike off a company.

It depends on the facts of the case.

when you cannot use the DS01 form to strike off a company

When Can A DS01 Form Be Used?

A DS01 Form to strike off a company can only be used:

  • When a Limited company has ceased trading.
  • When a company is no longer needed.
  • When a company is dormant.

When Can A DS01 Form Not Be Used?

A DS01 Form to strike off a company cannot be used when a company:

  • Is still trading*.
  • Traded within the last three months.
  • Changed its name within the last three months.
  • Disposed of valuable property within the last three months.
  • Engaged in activities other than those required for the purpose of ending the company within the last three months.
  • Has started the process of going into Liquidation.
  • Has gone into Administration.
  • Notice of intention to appoint an Administrator has been filed at Court.
  • A Company Voluntary Arrangement has been proposed.
  • Has a receiver or manager appointed over its property.
  • An application has been made to Court to sanction a scheme of arrangement.

*A company CAN however make payment of a liability arising whilst trading and this will not in itself be treated as conduct consistent with trading.

Consequences Of Failing To Use DS01 Form Correctly To Strike Off A Company

It is an offence to use the DS01 Form to strike off a company when you are not allowed to do so.

The DS01 Form specifically says in panel 2:

It is an offence to knowingly or recklessly provide false or misleading information on this application.

If a person ignores this warning they could be fined on conviction.

What Is The DS01 Form Procedure?

Using the DS01 Form procedure to strike off a company requires the company Director (or both of them if there are two Directors) or a majority of them to sign the DS01 and submit it to Companies House.

procedure to use of the DS01 form to strike off a company

Within 7 days of filing the form DS01 at Companies House, a copy of it must be given to every:

  • Shareholder
  • Director
  • Employee
  • Creditor
  • Potential creditor of the company such as anyone who has threatened or started legal proceedings.
  • Pension manager or trustee.

In order to give a copy of the DS01 to such parties you must either:

  • Deliver it to them.
  • Leave it at their recognised address.
  • Send it by post to their recognised address.

The filing of the DS01 Form at Companies House will cause it to be advertised in the Gazette newspaper giving public notification of the intention to dissolve the company.

If no objections are received within the two months specified in the notice then the company will usually be struck off the register within around three months from when the application was first made. The company would cease to exist.

Why Would Anyone Object To Filing DS01 Form To Strike Off A Company?

The reason someone might object to a company filing form DS01 to strike off and dissolve a company is if they are a creditor owed money.

Objection to using DS01 form to strike off a company

If a company is struck off the register via the DS01 Form procedure the company would no longer exist. A creditor can therefore no longer pursue their debt because there is no company in existence to chase. By objecting the creditor keeps the company ‘alive’.

Without objecting the creditor cannot force the company into Liquidation.

In order to object you need to have a good reason such as being owed money by the company.

Why Would A Creditor Object To Force A Company Into Liquidation?

A creditor might object to the use of the DS01 Form to dissolve a company so that they could appoint a Liquidator.

In every case that a company goes into Liquidation, an investigation is triggered into the company’s dealings by the Liquidator.

A creditor who has concerns about the conduct of the Directors may object to using form DS01 to strike off a company. This might happen if they suspect monies could be recovered from the Directors personally, for example due to:

What Can Happen If A Creditor Objects To The Filing Of The DS01 Form?

If a creditor objects, such as HMRC, then they can petition for the company to be wound up and placed into Compulsory Liquidation.

If this happens the Director(s) will have to deal with a Liquidation process and the Official Receiver will investigate the company’s dealings.

When Must You Cancel Filing The DS01 Form?

You can cancel the filing of the DS01 Form by choice.

However, there are certain circumstances in which it MUST be withdrawn.

withdraw DS01 form to strike off a company

In the following circumstances that can arise after the filing of the DS01 Form to strike off a company, it must be withdrawn:

*A company CAN however make payment of a liability arising whilst trading and this will not in itself be treated as conduct consistent with trading.

Liquidation Alternatives To Using A DS01 Form To Strike Off A Company

One of the major alternatives available to a company, when it is insolvent instead of using a DS01 Form to close a company, is to place it into Creditors Voluntary Liquidation.

liquidation alternatives to using DS01 form to strike off a company

In a Creditors Voluntary Liquidation for a small company with no assets, the Directors tend to pay for putting the Company into Liquidation. However, if instead, the Directors wait for a creditor to put the company into Compulsory Liquidation the creditors usually pay for the Liquidation.

The DS01 process can still result in a Liquidation later on as a creditor can apply to Court to reinstate the company, for it then to be placed into Compulsory Liquidation.

Director Redundancy And The Employees

Any employee may be entitled to claim redundancy. If you are a Director and you wish to claim redundancy to which you may be entitled, then using a DS01 Form to strike off and close a company may prevent you from being able to claim.

Amounts owing under an employment contract, such as for arrears of pay and unpaid holiday for example only, cannot be claimed if the company is struck off. In order to claim redundancy and you can see your potential entitlements in the article on this website Employee And Redundancy Help, then a company needs to go into Liquidation.

If however a company is dissolved using the form DS01 instead of going into Liquidation then employees may be forced to go down the lengthy and potentially stressful process of Employment Tribunal proceedings to get their rights recognised and lodge their claims.

What Next? Looking To Close A Company?

Expert Advice Is Just A Click Away

If you have any questions in relation to Using DS01 Form To Strike Off A Company (2022) then contact us as soon as possible for advice. Oliver Elliot offers a fresh approach to insolvency and the liquidation of a company by offering specialist advice and services across a wide range of insolvency procedures.

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Disclaimer: Using DS01 Form To Strike Off A Company (2022)

This page Using DS01 Form To Strike Off A Company (2022) is not legal advice and should not be relied upon as such. This article Using DS01 Form To Strike Off A Company (2022) is provided for information purposes only. You can contact us on the specific facts of your case to obtain relevant advice via a Free Initial Consultation.

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