What Is A Winding Up Petition By HMRC or Other Creditor
What Is A Winding Up Petition By HMRC or Other CreditorHelping directors for over 23 years.
To be struck off is not the same as being wound up or put into liquidation. As such, it should not be used as an alternative way of closing the company if the business is insolvent. See this page to check if your company is insolvent.
A company can only be struck off the Companies House register if the business is solvent, i.e. has no debts that cannot be paid, and no one objects. The procedures are laid down in the Companies Act 2006. A limited company can apply to be struck off provided the following are the case:
If all the above apply then the company can be struck off or dissolved. Any left over assets and cash is referred to as ‘bona vacantia’, with the Crown taking automatic possession.
If the company has small debts it may well be dissolved. If you want a full guide on how this can be done and receive a pack of forms, letter templates and guides then go to our dissolve a company website.
Please note that paying off debts does not necessarily constitute trading, but for detailed advice on this and all other aspects of dissolution, please call on 08009700539.
Any formal insolvency procedure is in place or proceedings have been commenced. Procedures such as a CVL, CVA, receivership or being wound up under the Insolvencies Act 1986, or scheme of arrangement under the Companies Act 1985.
HMRC, employees, creditors, etc. will all need to be informed within a week of submitting the application to companies house. When the application has been accepted it will be advertised in the Gazette giving at least 3 months notice of the application. At this stage there is the right for someone to object. If no objections have been received then the company is “struck off” the companies register. However, it can be reinstated up to 20 years later if HMRC believe that it has been dissolved as a way of avoiding tax.
If you wish to reinstate your company then the name may have been passed to someone else so you will need to find a new name.
If you are looking at company striking off as a way to end creditor pressure then think again.
Call us on 08009700539.
If you are concerned about your business, request our expert guide for worried directors. Find out everything from company structure to legal issues and personal guarantees.
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