Glossary

Voluntary strike-off

Krishna Prasad Dahal, Chartered Accountant

Reviewed by Krishna Prasad Dahal FCCA, ACA (ICAEW), FCA (ICAI India)ICAEW Council Member · Last reviewed

Definition

Voluntary strike-off is the way directors close a limited company they no longer need, by applying to Companies House on form DS01 (£13 online) to have it removed from the register. It suits solvent companies that have stopped trading. The company must not have traded, sold stock or changed its name in the previous 3 months, and it is dissolved no sooner than 2 months after a notice in The Gazette.

Before applying

  • Pay debts and send final accounts and a Company Tax Return to HMRC. Final accounts do not have to go to Companies House.
  • Distribute remaining money and assets, because anything left passes to the Crown as bona vacantia. Distributions before a strike-off are capital only if they total £25,000 or less; otherwise all of it is taxed as income.
  • Check the company is not threatened with liquidation and has no agreement with creditors.

The process

  1. A majority of the directors sign form DS01 and file it with Companies House.
  2. Within 7 days, a copy goes to everyone with an interest, including shareholders, creditors such as HMRC, employees and any director who did not sign.
  3. Companies House publishes a Gazette notice; if nobody objects, the company is dissolved after 2 months.

A company closed this way cannot use administrative company restoration; bringing it back needs a court order. If it might be useful later, compare the dormant company rules and SmartFiling’s dormant company accounts service.

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