The different options for closing a limited company and how to report it to HMRC.
Depending on your company’s status, there are a few different procedures for dissolving it from the Companies Register.
You can close your company by getting it ‘struck off’ from the Companies Register if it meets the following criteria:
- It hasn’t traded or sold any stock in the last 3 months
- It hasn’t changed names in the last 3 months
- It isn’t threatened with liquidation
- It has no agreements with creditors, eg a Company Voluntary Arrangement (CVA)
If all of the above applies to your company, follow this gov.uk guide for striking off a limited company.
If your company doesn’t meet these conditions, you’ll have to voluntarily liquidate the company instead.
There are three types of liquidation:
- Creditors’ voluntary liquidation: your company cannot pay its debts and you involve your creditors when you liquidate it.
- Compulsory liquidation: your company cannot pay its debts and you apply to the courts to liquidate it.
- Members’ voluntary liquidation: your company can pay its debts but you want to close it.
This gov.uk guide has step-by-step instructions for all types of liquidation.
Our team, content and app can help you make informed decisions. However, any guidance and support should not be considered as 'legal or financial advice.'