What does Dissolution Mean for Your Business?

Unfortunately, the reality is that very few businesses last forever and there may be a time where you need to consider dissolving your company.

A question we get asked a lot, what does dissolution mean for your business?

It is when a company is struck off Companies House, a public register on which official company information is displayed.

Why would I dissolve my company?

There are many reasons why you might go down this route, for example, your business may have been successful but has now served its purpose, or maybe your business has always struggled and not got off the ground.

Can I dissolve my company myself?

Yes is the simple answer but you do have to consider the conditions below, that must be met before a company is eligible:

• Not traded or sold off any stock in the last 3 months
• Not changed names in the last 3 months
• Not been threatened with liquidation or any types of insolvency proceedings

What do I do before closing my company?

Before you close your company you need to make sure you have done the below:

• Ensure business assets are distributed among shareholders
• Pay employees their final wages
• Pay any outstanding corporation tax, PAYE and National Insurance
• Filing accounts and a company tax return with HMRC
• Ask HMRC to close down your business’s payroll scheme
• Confirm that the company has paid any outstanding debts
• Close the company bank accounts
• Inform all interested parties and HMRC of your decision

Can anything stop my company from being dissolved?

Yes, anyone can object to the proposed dissolution of your company, if you owe money then your creditors should submit an objection to your application.

The objection is upheld by the Registrar then the dissolution will not be allowed to go ahead. This is why it is crucial that you inform all interested parties of your intention to dissolve the company.

As a director, you may also have to halt the proceedings yourself, this could be because your company has changed it name, you’ve continued to trade or your company has been made insolvent.

How can Forbes Burton help you

We have spent many years dissolving limited companies of all sizes and facing many different problems.

We believe in consistent and clear communication so we will always keep our clients up to date throughout the process. Our dissolution process follows six steps and is definitely a far cheaper option when there are no assets or funds available to pay for a liquidation.

Free dissolution test

Use our questionnaire here to find out if your company qualifies for Administrative Dissolution. We will email you the result straight away.

Get in touch

If your company is struggling with unmanageable HMRC debts, poor cash flow, or an uncertain future, you are not alone.

We speak to company directors struggling with the same issues as you every single day, and we are here to give you the help and guidance you need.

Call our team for free, no-obligation advice today on 0800 975 0380 or book a free consultation