Best Company Dissolution Companies

When looking to dissolve your company you need to choose a reputable business offering a professional service.

If you are looking to strike off your limited company from the Companies Register it can be an easy process online.

It is strongly advised prior to filing to strike off your company you speak to one of the best Company Dissolution Companies in the UK because they can advise on tax planning or possibly different solutions to close your business.

A company dissolution can remove businesses from the Companies House Register if you meet certain conditions. You cannot dissolve a limited company if it has significant debts and is insolvent.

In this Business Dissolution guide, you will learn everything involved in dissolving a limited company in the UK.

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Best Company Dissolution Companies 2024

There are many top-rated company dissolution companies in the UK to choose from.

From our research, here is a list of the best company dissolution companies in April 2024:

  1. Business Insolvency Company
  2. Debtline
  3. GW Financial Solutions UK Ltd
  4. Business Debt Help 
  5. Trust Debt Advice
  6. NTF Financial Solutions Insolvency
  7. Payplan
  8. National Debt Advice
  9. Stepchange

What is Company Dissolution?

Dissolving a company, often known as ‘striking off,’ entails deleting the company’s name from the Companies House official register.

The firm ceases to exist legally after dissolution. Companies House can dissolve companies that have not kept up with their accounting responsibilities, such as filing accounts and tax reports, even if it is a voluntary process.

Can you dissolve a limited company?

The process of dissolving a limited company or dissolution can be simple via an online DS01 form.

You must complete a DS01 form to strike off your company from the companies house register.

The DS01 form needs to be signed by all directors to close your company.

It is always worth checking with a registered insolvency practitioner before attempting to file for a company dissolution. Although this can be a cost effective way of closing your business, there are other avenues which can save you more money.

What To Do Before Dissolving a Company?

Prior to dissolving your company you need to meet the following Criteria:

  • Pay any employees what they are owed (including any redundancies)
  • Ensure business assets are distributed to shareholders
  • Pay any outstanding corporation tax, NI, PAYE along with any other taxes.
  • Filing accounts and company tax return with HMRC.
  • Closure of company’s bank accounts
  • Close company’s payroll scheme and deregister for VAT

Your business closure should also be announced to any interested parties, including the British Revenue Authority (HMRC). This should be done within 7 days of sending your application to HMRC.

Any employees are treated in accordance with company rules, businesses are disqualified or the account is empty. If you don’t it becomes property or dissolved property until a legally owned entity becomes incorporated. The company’s Bank Accounts are suspended during its dissolution. Any unused credit cards, assets etc. need to be returned.

How to Dissolve a Limited Company?

Once you’re satisfied your company meets the criteria, you can file for dissolution process using a DS01 form, which you can post or submit online to Companies House for a Fee of £8.

Within seven days of filing the application, you must send copies of the form to all ‘notifiable parties,’ including creditors, workers, shareholders, and other directors of the company. The majority of the directors must sign the document. A notice stating your decision to dissolve the firm will then be published in the Gazette.

If no objections are raised within three months of receiving this notice, your company will be officially dissolved. The Gazette will then publish a final notice confirming your company’s dissolution.

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Objection To Company Strike Off

The officials who work for Companies House regularly review applications for strikes against employees.

In most cases, creditors have the right to object against you when trying to cancel the payment. Even if that is the case for full dissolution, the buyer can have your business removed from the register.

So after paying the balance of the debts, your company can’t go through liquidation for legal reasons. If someone owes you money, you could terminate the company. If the owner wants to keep the company going, the judge may have them reinstated.

How Long Does It Take To Strike Off?

The case will initially appear in the Gazette newspaper for the period of two to three months, but it could then disappear unless any objection is brought. Those who qualify as bounce loans may be disqualified by reducing their loan balance.

Companies owing debt must be liquidated by voluntary assistance from an insolvency company.

What Happens When A Company Goes Into Dissolution?

Liabilities are usually erased when a company is dissolved. If the debt were not secured, the creditor would have to petition to have the company reinstated to the register and then file legal action against the restored firm to retrieve any money owed.

The Treasury Solicitor will recognise this interest if a firm debt is secured by a lawful charge, such as a mortgage. This means that the security holder will be able to redeem its loan, with any remaining funds going to the Treasury Solicitor. This money will be held in trust for other creditors or until the company is reinstated on the register.

Why Would a Company Dissolve?

Dissolution is the best option for businesses that have no assets or debts. It’s usually chosen by directors who are planning to retire when a business doesn’t gain traction or when there is a conflict.

If directors want to cease trading and the company has no further use it is good to dissolve the business.

Popular reasons businesses are dissolved include:

  • Retirement
  • Disputes with directors
  • Restructure company forma

Alternatively, if it is determined that its business model will not lead to future success, it is often decided to dissolve the company and move on.

Of course, this does not mean that anyone can dissolve a business at any time; there are specific guidelines for when the process is suitable.

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Disadvantages Of Dissolving a Company

The drawbacks of dissolving your company are:

  • Creditors have the option to reject the application; to proceed with the dissolution, they must provide their consent.
  • Any shareholder, creditor, or liquidator can apply for the company to be revived for up to 20 years after it has been dissolved.
  • They may be able to save the company if the creditors were not given the necessary notice, was in operation for three months prior to application of dissolution or if directors are convicted of unethical behaviour such as fraud.

While a reasonable approach to acquiring assets and distributing them to creditors is usually sufficient, there is no standard process. The method could be abused, and if done incorrectly, it could result in the company’s rebirth. If you have any questions about applying this methodology, please contact us right away for more information.

Leases, HP agreements, and contingent obligations cannot be terminated by dissolution. When such situations arise, receivership, administration, CVL, or a CVA must be applied. Directors should seek professional assistance from a turnaround or insolvency practitioner knowledgeable about the requirements in this area.

Dissolution avoids a formal investigation into the director’s activity from creditors’ perspective. Of course, if any transactions have been committed, such as a preference, transactions cheating creditors, or simple fraud, dissolution does not allow for an investigation into past activity. If creditors suspect such activities, they can, of course, reject permission, and the company will be liquidated either voluntarily or involuntarily.

Director Redundancy

Another less well-known disadvantage of dissolving your firm rather than liquidating it is the loss of your opportunity to claim director redundancy. Director redundancy works similarly to employee redundancy and can be a lifesaver during this difficult period.

Many directors choose to strike off over liquidation since it is clearly a far cheaper choice, costing £8 versus the £5,000 average cost of liquidation. However, liquidation could result in potential director redundancy, which could be worth far more than the liquidation fees.

The typical director redundancy claim is £9,000, while the average liquidation expense is roughly £5,000. This money could not only cover the costs of the liquidation, but it could also provide you with a financial boost in the future.

Other Debt Solutions

When analysing your credit report and current debtors it is advised to understand all the debt solutions available to you. These can include Members’ Voluntary Liquidation (MVL), Compulsory Liquidation and Creditors’ Voluntary Liquidation (CVL).

Here are all the debt solutions available to you depending on where you are based in the UK:

Popular Questions

How long does it take to dissolve a limited company?

On average it takes three months from the winding-up notice being advertised in the London Gazette to dissolve a UK limited company.

The time it takes to dissolve a limited business can vary if the process is complex and there are any objections.

Is Company Dissolution the Same As Liquidation?

No, liquidation and dissolution are not the same things. If there is no debt or existing debt and other liabilities may be settled in full within 12 months, a dissolution is a viable option.

Liquidation is a unique situation. Liquidation entails taking a company’s assets, selling them to make as much money as feasible, and using the proceeds to pay off any outstanding obligations. Liquidation is likely to be the best option for your firm if it cannot pay off its debts. Only a licensed insolvency practitioner can enter into liquidation on your behalf, who will monitor the entire process.

How can I Dissolve a Dormant Company That Has Never Traded?

Dissolving a dormant company, or one that has never traded is a straightforward procedure. It’s as simple as filling out form DS01 and sending it to Companies House.

It’s also a good idea to send a note to HMRC’s Corporation Tax office explaining that the company never traded and will be struck from the Companies House record. This is just to avoid any confusion, as every company is given a Corporation Tax reference number when HMRC forms it. This number must be included in the correspondence.

Can i Change My Mind?

After you’ve started the dissolution process, you can stop it by filling out a DS02 form from Companies House, which you can do online or on paper.

If you start trading again, alter your company name, carry out an activity unrelated to the dissolution of your firm, or your business is subject to insolvency proceedings or a section 900 application,

Are There Any Tax Implications?

If your company’s assets are worth less than £25,000, you can disperse them before it dissolves. HMRC may classify this as a capital gain. If your company’s assets are worth more than £25,000, you can pay a dividend to yourself and other shareholders. Entrepreneur’s Relief may apply in both circumstances, and if it does, you will only pay 10% tax (up to a lifetime cap of £10 million).

Because this is a sophisticated area of taxation, we recommend consulting with an accountant before making a decision.

All UK Insolvency Practitioners

Here is a full list of Insolvency Practitioners in the UK:

The insolvency practitioner list above gives you plenty of options to choose the best IVA firm in April 2024.

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