Company Dissolution - Close Your Limited Company for £39.99

Company dissolution is the formal process of closing a limited company and removing it from the Companies House register. It is also known as striking off or voluntary dissolution. Once dissolved, the company ceases to exist as a legal entity.

The process begins with a DS01 application to Companies House. This can be filed online (£13) or by post (£18), both fees are included in our £39.99 service charge. Dissolution is the simplest and cheapest way to close a company, provided it meets the eligibility criteria.

You can apply to dissolve your company only if it has not traded or sold off any assets in the last 3 months, has not changed its name in the last 3 months, is not subject to any insolvency proceedings, and has no outstanding agreements with creditors.

If your company has debts it cannot pay, dissolution is not appropriate. You would need to consider a Creditors' Voluntary Liquidation (CVL) instead. If the company is solvent but holds significant assets, a Members' Voluntary Liquidation (MVL) may be more tax-efficient.

Dissolution is best suited for companies that are no longer needed and have no outstanding liabilities, for example, a company that was never traded, or one that has settled all debts and distributed any remaining assets to shareholders.

A majority of the company's directors must agree to the dissolution and sign the DS01 application. If your company has one director, only their signature is needed. For two directors, both must sign. For three, at least two.

Once we file the DS01, you must send copies of the application to all notifiable parties within 7 days. This includes creditors, employees, shareholders, pension trustees, and any directors who did not sign the form. Failure to notify interested parties is a criminal offence.

You should also notify HMRC that the company is being closed, deregister for VAT and PAYE if applicable, and close the company bank account before the dissolution goes through.

After filing, Companies House publishes a notice in the Gazette. There is then a 2-month waiting period during which anyone can object to the strike-off. If no objections are received, the company is struck off the register and a second Gazette notice confirms the dissolution.

Once dissolved, the company no longer exists as a legal entity. You have no further filing obligations with Companies House. However, there are important things to be aware of.

The company's bank account is frozen on the date of dissolution. Any remaining balance, along with any other undistributed assets, passes to the Crown as bona vacantia. This includes intellectual property, trademarks, and domain names. Make sure everything is distributed before the company is struck off.

Directors must retain company records (bank statements, invoices, etc.) for at least 7 years after dissolution. A dissolved company can be restored to the register within 6 years if needed, for example, if HMRC discovers an unpaid tax liability.

If you are not sure whether dissolution is right, consider the alternatives. You can make the company dormant instead, keeping it on the register without trading. This is useful if you might want to use the company again in future.

For solvent companies with assets over £25,000, a Members' Voluntary Liquidation (MVL) allows you to extract funds as a capital distribution rather than a dividend, which is usually more tax-efficient.

For insolvent companies, a Creditors' Voluntary Liquidation (CVL) is the proper route. Using dissolution to avoid paying debts can result in the company being restored to the register and directors facing personal liability.