Just a quick note to say a big thank you to all the staff at KSA, our CVA was passed today by creditors voting in an overwhelming number including HMRC to accept the proposal as prepared by KSA.
The road to reach today’s conclusion has been bumpy, but at each stage your team has supported and guided us through the issues and we have reached a very satisfactory outcome to the benefit of customers, staff, all creditors and shareholders.
Striking Off A limited Company
I want to close my company. How do I go about striking it off the companies register?
Striking off is the same as company dissolution
Striking off is not the same as winding up or 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 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 request to be struck off provided the following are the case:
- The business has not traded for 3 months
- The company's name has not changed in the last 3 months
- There is no legal action against the company
- The company, in the last 3 months,disposed for value of property or rights that, immediately before ceasing to be in business or trade, it held for disposal or gain in the normal course of that business or trade.
If all the above apply then the company can be dissolved. Following dissolution, any left over assets and cash is referred to as ‘bona vacantia’, with Crown taking automatic possession.
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.
Striking off cannot be used if:
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.