Image 1 of 1
Limited Company Dissolution
Closing a company is a big decision, but it doesn’t have to be stressful. We’ll take care of the formalities so you can move forward with confidence.
Sometimes the right decision for a business is to close it down. Whether the shareholders are retiring, selling the company’s assets, or simply winding things up, voluntary company dissolution (sometimes called “striking off” or “winding up”) is a formal way to close a company cleanly and legally.
When you can dissolve a company
A company can apply for dissolution if, in the past three months:
It hasn’t carried out its normal business activities
It hasn’t changed its name
It hasn’t conducted any activity unrelated to winding up (except selling property or rights needed when trading and settling debts)
It hasn’t been threatened with liquidation
It hasn’t entered into a credit agreement like a company voluntary arrangement
It isn’t involved in legal proceedings
If any of these situations apply, Companies House may require a formal voluntary liquidation instead.
Key things to know:
-
Under Companies House rules, you must inform anyone with an interest in your business within seven days. This includes shareholders, employees, creditors, landlords, suppliers, banks, pension managers, and anyone pursuing legal claims.
-
You can cancel the dissolution using the DS02 form if circumstances change, such as starting trading again or becoming involved in insolvency proceedings.
-
Assets under £25,000 can be distributed before dissolution, possibly treated as a capital gain by HMRC. Assets over £25,000 can be paid as dividends. Entrepreneur’s Relief may apply, reducing tax to 10% (subject to a lifetime limit). Consult an accountant to ensure compliance.
-
The process typically takes 3–6 months from submission of the DS01 form.