Voluntary strike off at Companies House is a way of closing a limited company that does not involve a need to liquidate the company. This is a process known as the dissolution of a company.
Voluntary Strike Off Restrictions
There are restrictions on voluntary strike off of a limited company. You can only strike off your company if it:
- has not traded or sold off any stock in the last 3 months
- has not changed names in the last 3 months
- is not threatened with liquidation
- has no agreements with creditors, for example a Company Voluntary Arrangement (CVA)
Voluntary Strike Off Procedure
In order for a company to be struck off, it has to comply with the voluntary strike off procedure.
It should hold a Board Meeting with a resolution for the procedure being approved by a majority of the directors, subject to the articles of the company. You can then, subject to the above restrictions, apply to strike off a limited company.
Final Accounts And Taxes
As part of the company closure procedures, it will usually be necessary to file final accounts at Companies House.
HMRC need to be informed prior to using the DS01 form to strike off a company so that it is aware the company is closing down and notice provided where applicable by the filing of any final VAT return, final corporation tax return and final payroll return.
Who Needs To Know?
Within 7 days of issuing the application to Companies House, a copy of it must be sent to:
- any creditors
- employees – who must be made redundant
- members
- directors
- HMRC
Business Assets
The business assets need to be distributed to the shareholders prior to striking off the company, as otherwise they will go to the Crown in what is legally known as bona vacantia.
In the event of any oversight then it will be necessary to restore the dissolved company to reinstate it, to get the assets back.
Keeping Company Records
Whilst the company once struck off will no longer in effect exist, it is still a legal requirement to keep company records for 7 years after it has been dissolved.
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Disclaimer
This page is not legal advice and is not to be relied upon as such. This is provided for information purposes only. You should take independent advice on the facts of your case. No liability is accepted for reliance upon this post.
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