Starting your own successful business is a big achievement and as such, there is a vast amount of information online regarding how to start, what your first steps should be and how to grow your business as big as possible. But what if you need the opposite of that?
For numerous reasons you might one day find yourself in a position where you’d like to close your company and, for whatever that reason may be, this quick guide will ensure you close it down correctly.
When can I close it down?
If your company has stopped trading and has paid all its debts, submitted and agreed on any tax returns, and closed its bank accounts, it becomes dormant. If it is no longer required then you can start to close it down.
What’s the cheapest option?
By far the cheapest method is by making an application to Companies House to have the company removed from the active register. In order to do this, you simply need to download the relevant application form (here) from the Gov.uk website and pay the filing fee of £10.
Therefore, provided you’re happy to forego and professional support and go it alone then closing your company can cost as little as £10.
What about current contracts?
If your company has creditors or members etc that will be affected by the closure of your company then you must inform all the necessary parties before applying. These parties may object to the company being struck off. You must also make sure you close the company’s bank accounts and transfer any domain names etc before you apply.
You should notify any other organisation or involved party who may have an interest in the company’s affairs, otherwise, they might later object to the application. Examples that you may need to consider are:
- Local authorities
- Training and enterprise councils
- Government agencies etc.
This area is basically tying up any loose ends as best as you can.
What happens to my accounts?
Starting from the actual date of dissolution, the company’s bank account will be frozen and any credit balance in the account will pass to the Crown. Any assets of a dissolved company will also belong to the Crown.
Provided you have followed the aforementioned advice and are confident all these matters have been attended to, file the form and pay the £10 required.