Can I Strike off a Company?
If you’re a business owner looking to close a company that’s no longer trading and has no debts, striking off (also known as company dissolution) can be a simple and cost-effective way to do it. It’s a voluntary process that removes your company from the official register at Companies House, effectively ending its legal existence.
Here’s what you need to know before you take this step.
What Is Company Strike-Off?
Striking off is the formal process of closing a limited company that’s no longer needed. It’s available when the business:
- Has stopped trading.
- Has no outstanding debts or liabilities.
- Hasn’t changed its name or sold off significant assets in the last three months.
The process is regulated under Section 1003 of the Companies Act 2006 in the UK and must be done correctly to avoid legal issues.
How to Strike Off a Company
Settle Debts and Liabilities
Ensure all company debts are paid, staff are properly compensated, and assets are distributed. You can’t strike off a company with unpaid creditors—HMRC and others must be cleared.
Close Accounts and Notify HMRC
File any outstanding accounts and tax returns. Notify HMRC that the company has ceased trading to avoid penalties or investigations.
Distribute Assets
Any remaining assets must be distributed to shareholders before striking off. After strike-off, anything left becomes property of the Crown (known as bona vacantia).
Apply for Strike-Off (Form DS01)
File Form DS01 with Companies House, signed by a majority of directors. There’s a small fee involved.
Notify Interested Parties
Within 7 days of submitting the DS01, you must inform creditors, employees, shareholders, and other interested parties.
Wait for Confirmation
Companies House will publish a notice in The Gazette. If no objections are raised within 2 months, the company will be officially struck off.
What If You Have Debts?
You cannot use the strike-off process if the company has outstanding debts. In that case, a Creditors’ Voluntary Liquidation (CVL) is the appropriate route. Trying to avoid debts by striking off a company can lead to serious consequences, including fines and director disqualification
Conclusion – Keywood Group Insolvency
Striking off is a legitimate and efficient way to close a dormant or debt-free company—but it must be done carefully and transparently. If there’s any uncertainty about the company’s financial status, it’s best to consult a professional before applying. Done right, it’s a clean and low-cost exit for a business that’s run its course.
If you’re unsure about the next step, speak to an insolvency practitioner sooner rather than later. Keywood Group is an independent firm of Licensed Insolvency Practitioners based in Birmingham and London, specialising in providing confidential and expert advice on all aspects of corporate insolvency.
