If you run a limited company in the UK and want to close it down, you have a number of options.Getting your company struck off the Register of Companies is the cheapest and simplest way to make sure you have enough money to pay your bills.You can start a members' voluntary liquidation of your company.If the company is insolvent, you have to go through the voluntary liquidation process.You can appoint a licensed liquidator to take charge of your business.The process doesn't require a lot of work on the part of business owners or directors.
Step 1: Inform interested parties of your intentions to close down.
Let them know that you're closing the company.If you don't have a contractual relationship with anyone, you can simply post a notice on the door or tell them in person.Send a formal letter to your creditor.If your business has members or shareholders, you need to let them know that you intend to close it.You have to send notice to hm revenue and customs.There is a form on the website.
Step 2: Take care of tax and insurance when you pay your final wages.
After you've paid your employees their final wages, contact PAYE and National Insurance, as well as HMRC, and let them know that you no longer have any employees.Check the "Final submission because scheme ceased" box when you submit your final payroll return.You can add the closing date of your payroll scheme.If you want to have your company's name struck from the register, you need to cease operations.
Step 3: Business assets should be given to shareholders.
You can divide up the remaining assets according to the agreements you made when you started the business.If you've made arrangements with the creditor to pay the debts yourself, make sure to distribute assets before that happens.Any assets left in the name of the company after it is struck off the register will be given to the Crown.If you want to get anything back, you have to re-form your company.
Step 4: You need to complete a striking off application.
The striking off application includes a list of actions that must be completed before you can be struck off the register.All of the actions have been verified by the application.The application must be signed by the company's directors.The striking off application can be downloaded from the register at www.gov.uk/government/publications/strike-off-a-company-from-the-register-ds01.
Step 5: The form should be submitted to Companies House.
After you've completed your application and a majority of the directors of your company have signed it, mail your form to the appropriate Companies House and pay the fee.The form must be sent to all interested parties, including members of your company, employees, and directors who didn't sign it.If your company is registered in England or Wales, you need to send your form to The Registrar of Companies.If your company is registered in Scotland, you need to send your form to the company's office in Edinburgh Quay 2.If your company is registered in Northern Island, you need to fill out a form.1.
Step 6: When your company is struck off the register, wait to receive notice.
When the form is received, you'll get an initial notice.You don't have to do anything if you filled everything out correctly.If no one files an objection, your company will be struck off the register after 2 months.If there are errors in your form, you will be told in the first notice what you need to do to correct them.
Step 7: A declaration of solvency should be drafted.
According to the statutory declaration of solvency, all of the company's debts can be paid off in a year.The form to give notice ofstatutory-declaration-of-solvency-liq01.A majority of your company's directors need to sign the declaration.
Step 8: List your company's assets and liabilities.
A full statement of your company's assets and liabilities is required with your declaration of solvency.This statement should be updated to a date that is close to the date you complete your declaration of solvency.Payments of interest at the official rate should be included in the calculation of whether your company can pay its debts within a year.If you want to make sure no mistakes are made, consider having an attorney or accountant help you.
Step 9: At the general meeting of shareholders, pass a winding-up resolution.
You can call a general meeting of the shareholders of your company.You must have your meeting no later than 5 weeks after you sign the declaration of solvency.The winding-up process will be taken care of by a liquidator at the same meeting.You must have a license to work in insolvency.You can find insolvency practitioners in your area by going to the government website.
Step 10: For 14 days, place an advertisement in The Gazette.
A copy of your winding-up resolution must be published in The Gazette for 14 days.Notices are given to interested parties if you are liquidating your company.You can place your notice at https://www.thegazette.co.uk/place-notice.You can use the forms and templates on the website to write your advertisement.
Step 11: Your resolution should be sent to Companies House.
Make a copy of your resolution and send it to Companies House.You have to send your resolution within 15 days.If your business was registered in Scotland, you need to fill out a form.
Step 12: The final account should be given a notice to Companies House.
The company's assets and debts will be paid off by the liquidator.The final account must be submitted to the companies house.You can get the form online at www.gov.uk/government/publications/ give-notice-of-Final-account-prior-to-dissolution-in-mvl-liq13.The notice of final account will be registered by Companies House.After the notice of final account is registered, your company will be dissolved.
Step 13: To get agreement from shareholders, call a meeting.
Your company should stop trading and liquidate if you are a director.75 percent of your shareholders must agree to a voluntary liquidation.If you want to close the company and you don't believe it can pay back all of its debts within a year, you should look into a voluntary insolvency.The company's finances should be summarized.Information about profit projections and other factors that are negatively impacting your business could be included.If your information is significant, you should give your shareholders time to digest it before voting.
Step 14: If you can't get your shareholders to agree, apply to the court.
The court can order a compulsory liquidation if your shareholders or directors don't agree to it.If you have debts of more than £750 and the company can't pay them within a year, your company is eligible for compulsory liquidation.75 percent of your shareholders have to agree to compulsory liquidation before you can apply to the court.To apply, fill out a petition.You can download the form at www.gov.uk/government/publications/apply-to-wind-up-a-company-that-owes-you-money-form-comp-1Depending on the amount of paid-up share capital your company has, you can apply anywhere.The amount can be found on the register.The cost to submit your petition and attend the court hearing will be over $2,500.It is less expensive and more efficient to get your shareholders to agree to a voluntary liquidation.
Step 15: The statement of company affairs should be sent to your creditor.
A summary of your company's assets and liabilities is included in your statement of affairs.The statement must be prepared by the company's directors.You can use the form to give notice of the statement of affairs.
Step 16: The insolvency practitioners should be appointed to handle the liquidation.
Your liquidator will take complete control of your business once the process of liquidating begins.They settle legal disputes and sell off business assets.You can find licensed insolvency practitioners in your area.If you interview more than one, you can choose the best person for you and your company.
Step 17: Your resolution should be sent to Companies House.
If the shareholders approve the resolution, send it to the Companies House for registration within 15 days.The resolution should be advertised in The Gazette.If you want to advertise your resolution in The Gazette, you need to go to www.thegazette.co.uk.
Step 18: Send the notice of final accounting.
The final account will be sent to the register with Companies House.3 months after the final account is registered, the company will be dissolved.Your company is struck from the register when it is dissolved.Assets left in the company name would be passed on to the Crown.It's not likely that anything would be left from an insolvent company.