Dissolving a Company
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Dissolving a company has the effect of removing the business from the registrar of companies at Companies House, so annual returns and accounts no longer need to be filed. It means the end of the company.
Unlike other methods of voluntarily closing a business, there will be no liquidation costs to incur and very little publicity. There will also be no investigation into your conduct as company director.
Dissolution is the right choice for companies with no assets or debts, and when the company has no further use.
It’s typically chosen by directors approaching retirement; where a company has never got off the ground, or where there is a dispute between directors.
Alternatively, if it is seen that the company business model is not going to bring success in the future, it is sometimes decided to simply dissolve it and move on.
Of course this doesn’t mean anyone can simply dissolve a company: there are strict rules about when the process is appropriate.
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