The Insolvency Service has announced that from 1 May 2024, the costs of striking off a limited company has increased to £44 for a paper application and £33 for a digital application. This is quite the increase from the previous £10 (paper) and £8 (digital) respectively.
At BRI Business Recovery and Insolvency, we provide support and advice to companies facing financial difficulty. We also make it our priority to keep you up-to-date on legislation changes that might affect your business.
What is a striking off application?
When a new company begins trading, it must be registered on Companies House. If the company ceases trading and is no longer required, it will need to be struck off the register.
Striking off is also known as ‘dissolving’ a company and is an option for a company based on meeting certain criteria, which are stated below.
Once your company is struck off, you will lose access to any company bank accounts and will not be able to receive any payments to these accounts without restoring the company. It is, therefore, vital that you ensure all have dealt with all company assets prior to your strike off application.
Applying to strike off my company
To strike off your company, you must submit a striking off application to Companies House to remove a company from the Companies Register. If you meet the criteria, it can be cost-effective for a director to close down a limited company.
This application will eventually lead to a company being dissolved. It can either be completed on paper and posted or submitted digitally online through the UK government website.
Conditions to be met to apply for striking off a company
A director can apply for a company to be struck off if, in the last three months, it:
- has not traded or otherwise carried on any business
- has not changed its name
- Is not subject or proposed subject to any insolvency proceedings, has not engaged in any other activity except one which is necessary for the purpose of making an application for strike off or deciding whether to do so and comply with any statutory requirements
If your company does not meet these conditions, then striking off will not be an option, and you may have to voluntarily liquidate your company instead.
Am I required to tell anyone when striking off my company?
Yes, the directors or members are responsible for notifying all interested parties; failure to do so is a criminal offence. It would be sensible to announce your plans to HM Revenue and Customs by sending your final tax returns and the company’s accounts (these do not need to be filed with Companies House) prior to making the application. You will also need to deal with your employees according to the legislation.
In respect of “all interested parties”, you must inform all of the following within seven days of sending the application to the registrar:
- Shareholders
- Creditors
- Employees
- Managers or trustees of any employee pension fund
- Directors who did not sign the application form
Can I destroy my company records?
You will need to keep copies of any employers’ liability insurance policies and schedules.
You will also need to keep other business documents for seven years after the company is struck off (unless your industry requires records to be retained for a longer period). These records include bank statements, invoices, and receipts.
The offences and penalties when striking off a company
It is an offence:
- to apply when the company is ineligible for striking off
- to provide false or misleading information in, or in support of, an application
- not to copy the application to all relevant parties within seven days
- not to withdraw the application if the company becomes ineligible
The offences can attract a potentially unlimited fine on summary of conviction or an unlimited fine on indictment.
If a director breaches the requirements to give a copy of the application to relevant parties and does so with the intention of concealing the application, they are also potentially liable to up to 7 years imprisonment as well as an unlimited fine.
Anyone convicted of these offences may also be disqualified from being a director for up to 15 years.
Further information on striking off a company
Further information on striking off applications can be found at https://www.gov.uk/strike-off-your-company-from-companies-register.
BRI can help
If you would like to know more information or are unsure of whether you are able to strike off your company, then please get in contact with BRI to arrange a free discussion without obligation.