Striking off a company doesn’t have to be a stressful process – as long as you’re prepared and have considered all the possible implications. It is a big decision that needs to be carefully weighed up so that you don’t inadvertently create more problems for yourself.
In this article, we will take a look at the 4 key things you need to consider before striking off your company. So, if you are planning to take this step, make sure you have thought about the following.
1. Using DS01 to Strike off Your Company
It is important to note that you can only legally strike off your company using the DS01 form. This form must be filled in and sent to Companies House, together with a certificate of dissolution from an officer – such as a director or a shareholder.
Your company will then be struck off the register at Companies House, which means it no longer exists in the eyes of the law.
Generally, after you submit the DS01 form, it typically takes about 3 months for the whole process to conclude and for your company to be officially struck-off.
After the DS01 form is transmitted to Companies House, directors have a period of 7 days to share this document with any interested stakeholders. This could include:
- Shareholders
- Creditors
- Employees who did not sign it initially.
- And managers or trustees of pension funds
You can find the DS01 form by searching “DS01” on the Companies House website.
2. Pay Off Any Outstanding Debt and Tax Liabilities
If you don’t want to get involved in legal things, it only makes sense to ensure that you have paid off all of your outstanding debt and tax liabilities before submitting the DS01 form.
This is because creditors or other third parties could still pursue legal action against you after your company has been struck off.
Therefore, it is important to make sure that any debts you may have been taken care of before submitting the DS01 form. This includes HMRC debts, business loans, or any other creditor owed money by the company at the time of striking it off.
Start with calculating the taxes first – this is because HMRC will always take priority over other creditors.
Once you are done with your taxes, you can then focus on paying other creditors. Make sure to find gaps in the rules and regulations, so you can pay off as little debt as possible.
3. Winding up the Company’s Affairs
From suppliers to shareholders, you need to inform everyone involved with the company that you are planning to strike it off. This is so they can make their plans in case of any changes or disruptions that may arise from the dissolution of the company.
You should also wind up your company’s affairs – this includes filing any remaining tax returns and disposing of any assets. This should be done before the company is officially struck off, as you won’t have access to those accounts or documents once it is dissolved.
Also remember that if you do not inform your creditors of your intention to strike off the company, they may take legal action against you for unpaid debts.
This also includes informing your employees (if you have any) and making sure that any outstanding payments or other benefits are taken care of.
4. Informing all the Directors and Shareholders to get their Agreement
And lastly, make sure that all directors and shareholders are informed of your intention to strike off the company. This is so they can agree – or disagree – with the proposal.
If any individuals do not agree, then you cannot legally strike off the company unless you have obtained a court order from them. Once everyone has agreed, then you can go ahead and submit the DS01 form to Companies House.
You also have to make sure to keep records of all these agreements in writing. This will help you if there are any further disputes or legal issues that arise from the striking off of the company.
You can get help from legal experts if you need it, as the process of striking off a company can be complicated. However, if everything goes according to plan and all stakeholders are in agreement, then the whole process should be relatively straightforward.
Conclusion
So there you have it! As you can see there are a few things that need to be taken care of if you want to strike off your company. From informing stakeholders, making sure all debts are paid off, and ensuring that everyone agrees to the process, striking off a company can seem like a daunting task – but if you follow certain steps and keep things organized, it doesn’t have to be. Good luck!
