Striking off is the cheapest way to close a limited company that has stopped trading, can pay its debts and has little left to distribute. It is not an alternative to formal insolvency proceedings, so use it only if the company can pay its debts. Creditors can still apply to restore a company after it has been dissolved.
Check the company can be struck off
Applying when the company is not eligible is an offence that can lead to a fine.
Activity that is necessary to apply, to conclude the company's affairs or to meet a legal requirement does not count as trading. Paying the strike off fee, taking professional advice and settling trading debts are examples. A company that sells the vehicle it used to deliver stock is not disposing of trading property, but one that keeps selling its stock is.
Close the company down first
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Finish with your staff
Follow the redundancy rules if you are dismissing anyone, pay final wages, and tell HMRC the company has stopped employing people. If you pay subcontractors under the Construction Industry Scheme, tell HMRC that too.
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Cancel your VAT registration
You must do this if the company is registered and has stopped trading.
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File final accounts and a Company Tax Return
Send both to HMRC, marked as the final trading accounts and return, and pay all Corporation Tax and other tax due. Companies House does not need the final accounts. A loss in the final year can be claimed back against earlier profits as terminal loss relief.
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Settle HMRC refunds
HMRC cannot process or pay a refund to a dissolved company, so claim any you are owed before you apply.
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Deal with the assets
Pay the creditors, then share what is left among the shareholders. Sell or transfer property, vehicles, equipment and domain names, and close the bank account.
Tax on what you take out
Above the limit below, the whole amount is taxed as income, so compare a members' voluntary liquidation if you expect to distribute more.
Apply to Companies House
Apply on form DS01, online or on paper. The application must be made by the directors or a majority of them.
You cannot pay by cheque from the account of the company you are striking off.
Send a copy of the application within 7 days
You can hand over a copy, leave it at the person's last known address or the company's registered or principal office, or post it. For a creditor you can leave it at, or post it to, the place of business the company dealt with. Keep proof of delivery or posting.
You can also be disqualified as a director for up to 15 years.
What happens next
Companies House checks the application and writes to you to acknowledge it. It then publishes a notice in the Gazette, where anyone can see that the company proposes to be struck off. Notices appear in the Gazette for the part of the UK where the company is registered.
If someone objects
Settle the debt or resolve the claim, or the objector may withdraw it. If you cannot, withdraw your own application.
Withdraw the application if things change
As a director you must withdraw the application at once if, before the company is struck off, it starts trading, changes its name, disposes of property or rights for value, or becomes subject to insolvency proceedings, a creditor arrangement or a court petition to wind it up. Not withdrawing is an offence. You may also withdraw if you change your mind.
After the company is dissolved
The company stops existing, so it cannot send or receive money.
Directors' and members' liabilities continue and can be enforced as if the company had not been dissolved. Because you applied to be struck off, restoring the company needs a court order rather than an application to Companies House. A former director, former member, creditor or anyone with a potential legal claim can apply, within 6 years of dissolution, or at any time to bring a claim for personal injury damages.
Strike off your limited company from the Companies Register (opens in a new tab)
Legal basis
Primary legislation and key regulations
Browse UK legislation (opens in a new tab) legislation.gov.uk