So, you’ve decided to close your limited company. Maybe it’s served its purpose, or perhaps you’re just tired of pretending to enjoy bookkeeping. Whatever the reason, understanding how to strike off a limited company in the UK doesn’t have to be a nightmare. In fact, with the right steps, it can be as easy as making a cup of tea (well, almost). Here’s a lighthearted guide to help you through the process.
Read more: What does dormant company mean?
How to Close Down a Limited Company in the UK: A Simple Step-by-Step Guide
Step 1: Check If You Qualify to Strike Off Your Limited Company (A.K.A. The Reality Check)
Closing a limited company can’t always be done off at the drop of a hat. You need to ensure:
- Your company hasn’t traded in the last three months.
- It has no outstanding debts (HMRC isn’t known for its generosity!).
- You’re not involved in any legal proceedings.
- You haven’t sold any company assets in the last three months.
If your company meets these criteria, congratulations! You’re one step closer to freedom.
⚠️ If your company has debts that you can’t pay, you cannot simply dissolve it. Instead, you’ll need to look into insolvency procedures, which require professional advice.
Step 2: Notify the Right People (Because Ghosting Is Rude)
Before you apply for striking off, you need to inform everyone who might be affected. This includes:
- Shareholders
- Employees (if any)
- Creditors
- HMRC (they will find out anyway, so best to be upfront!)
Giving them fair notice helps avoid any nasty surprises later on.
If you are a sole director, shareholder and employee all in one then you really just need to tell yourself and make sure everyone has been paid.
Step 3: Settle All Business Affairs (AKA Clear Your Desk)
Before the company is struck off, make sure you:
- Pay all outstanding bills (HMRC again, they never forget!).
- Close your business bank account. When the business is struck off you will lose access to the bank account.
- Transfer any remaining assets to yourself or shareholders.
- Submit final tax returns and accounts to HMRC.
Once that’s done, you’re ready for the next (and most exciting) step.
Step 4: Fill Out the Magic Form (DS01 – Company Dissolution Request)
Ah, the DS01 form for company closure – the key to your company’s farewell party. You can get this form from Companies House, fill it out, and have it signed by a majority of directors. Then, send it off with a small fee.
Alternatively, you can apply online, making the process even smoother.
💡 Tip: If you have multiple directors, make sure they all sign off on the decision.
Step 5: Wait for the Public Notice (And Try Not to Panic)
Once your application is submitted, Companies House will publish a notice in The Gazette (the UK’s official public record). If no one objects within two months, your company will be officially struck off!
Striking off a company with Companies House is a bit like waiting for exam results – only this time, you actually want your name to disappear.
Step 6: Celebrate Your Freedom! (but Keep Your Records Safe)
If no objections arise, your company will be dissolved, and you can finally relax. Go ahead and celebrate – whether that’s with a nice cuppa, a glass of bubbly, or simply deleting your bookkeeping software forever.
Don’t get too carried away with burning all business records, HMRC will still require you to keep everything for 7 years even if the business no longer exists.
⚠️ Tip: Celebrate your success, but don’t delete everything too soon!
Final Thoughts – Striking Off a Limited Company the Right Way
Closing a company might seem like a daunting task, but by following these steps, you can make the process straightforward (and maybe even a little enjoyable). So, if your business chapter is coming to an end, don’t stress – just take it one step at a time, and soon, you’ll be moving on to your next adventure!
If you need support with how to dissolve a limited company, final tax returns, HMRC communication, or business finances, we’re here to help!
📩 Contact us today for expert guidance on closing your business smoothly.
