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How do I dissolve my company?

6 October 2009 No Comment

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The simple case of a “one-man” or family company

Once you have decided that a company is no longer needed, it can easily be dissolved. You must first ensure that the accounts and corporation tax return for the final period of trading have been submitted and that any tax liability has been paid.

If there is a tax repayment for the final year, you will want to have received that before you close the bank account and dissolve the company. If a company still has money in a bank account on the date of dissolution, you will forfeit that money and it is sent to the government’s Solicitor General. It is a nightmare to get a company reinstated and then recover money from the Solicitor General. So we recommend that you complete your finances first and only then, dissolve your company.

This is one of those exercises that Companies House still does on paper rather than electronically. Download a copy of the dissolution form from here. And if you need a continuation sheet it’s here.

Step 1

Print off the form DS01. Fill in your company number and name and then have each director sign and date the form. Take a photocopy for your records.

Step 2

Prepare a cheque for £10 made payable to “Companies House”. If you don’t have a cheque book, then you can try to find somebody who will do a £10 cheque for you, otherwise you’ll have to go to the Post Office and buy a £10 Postal Order which will cost you about £13.

Step 3

Send the signed form and the cheque by Recorded Delivery directly to:

Companies House
Crown Way
CF14 3UZ

Make a note of the Recorded Delivery slip number and let your accountant know the number and the date of posting. That allows us to log this into the system and keep tabs on Companies House!

Step 4

The whole dissolution process has to allow for notices to be published in the London Gazette over a 3 month period. It normally takes around 4 to 6 months to have a company dissolved. Once the process has been started, no more forms should be sent to Companies House for this particular company. If that happens, it will delay the dissolution process, because they effectively start the whole thing again!

If you need further advice, please contact us

Posted on 6 Oct 2009 by The Proactive Accountant Dot Com