Liquidating a well-run limited company that has been idle for at least three months might be a more time- and money-efficient option than attempting to have the company removed from the Companies House Register. We’ll go over what it means to “strike off” a limited company, how it’s done, and whether or not it’s a viable choice for winding down a limited company in the following paragraphs.
Breaking the Bond with a Business
What does it imply when a company is “struck off” the register of companies?
A limited company gets “struck off” when it is withdrawn from the Companies House Register, a process known as “striking off.” It’s impossible to conduct business, or sell assets if the company is removed off the register. The company’s intention to dissolve will be announced in the form of a notice that will be published in the Gazette, providing interested parties with advance notice of three months. It will be removed from the list after this time if no complaints are made. Choosing the strike off company service comes useful here.
You are able to start the procedure of a voluntarily strike off if any of the following apply to you:
Neither the firm nor its creditors are involved in any form of arrangement, such as a Company Voluntary Arrangement (CVA), at this time (CVA)
- In the last three months, it has not engaged in any business activity other than those that are necessary to wind down the firm, and it has not traded at all.
- Last three months have seen its name remain unchanged.
- In the last three months, the company has not sold any of the properties or rights that are held by the firm.
- Companies Act of 2006 Sections 1004 and 1005 provide forth the conditions under which a corporation may voluntarily be disbanded.
The consequences of dissolving my company
Company names are erased from the Companies House record for at least three months after the DS01 form is submitted. Once you’ve submitted the application, this step will be completed. Companies House will give you an acknowledgement letter confirming that your company has been removed from the register if you have fully completed the form and no objections have been raised. As soon as the firm is withdrawn from the registry, this will take place.
After that point, your firm will vanish off the face of the planet. As a result, your company’s name will be accessible for use by other organisations, and you will not be able to engage in any form of economic activity without a high danger of incurring serious legal consequences.
“Bona Vacantia” is a term used to describe the transfer of ownership of funds and assets that have not been delivered to shareholders when a company is stricken from the register. In order to recover these assets, it’s probable that the company will need to be restored.
What can a company do to save itself from being stricken off the list before it’s too late?
There are a few things you need to take care of first before you can start cross someone off your list. Depending on the size and nature of your business, they may include, but are not limited to:
Why do companies willingly remove themselves from a list?
Some business owners may decide to withdraw their company from the Companies House register for a variety of reasons.
