The life of a company is not always indefinite and there may come a time when your company is dissolved, voluntarily or otherwise.
Numerous situations may arise that could necessitate the dissolution of your company, whether you are simply retiring and you do not wish to pass on the torch or solvency issues in which the continued life of the company is not a feasible option.
If the company owners do not wish to maintain a company they can apply for a voluntary dissolution to formally close this with form DS01.
Retirement, a change in direction or an unprofitable business are just some of the reasons why a company may be voluntarily closed.
It is not uncommon for a company to be incorporated with errors. Often, a lot of these errors are easily rectified by filing various forms with Companies House.
However, information regarding the majority of changes will be permanently displayed in the company history, information that is publicly available.
For example, a company may be formed with a typing error in the name. Fixing this could be as simple as applying for a name change, however a typing error in the company history may not appeal to any potential investors or clients in the future. Dissolving this company and forming a brand new entity could be the better option in the long term.
When a company cannot meet its financial requirements and current debts cannot be settled liquidation, voluntarily or not, may be the next step.
If this would apply to your company please contact an accountant for further guidance.
As one of the most common causes of the dissolution of a company, failure to comply with statutory filing requirements will lead to a proposal for the company to be formally struck off the register.
Companies that have been dissolved for this reason can apply for an administrative restoration. Contact Companies House for assistance.
The company must not have traded or changed the company name for at least three months prior to the application.
The company must not have engaged in any other activity except for the purpose of concluding its affairs or meeting its statutory requirements.
The company must be up to date with its statutory filing requirements.
The company must not have disposed of any property or rights for a value that it would not have disposed of if the intention was to continue trading as usual.
