Procedures for a company that has ceased to trade
If your company has ceased to trade, you can apply to get it struck off the Companies House Register if the following conditions are met by the company:
- It has not traded or sold off any stock in the last 3 months
- It has not changed its name in the last 3 months
- It is not threatened with liquidation
- It has no agreements with creditors, e.g. a Company Voluntary Arrangement (CVA)
If your company does not meet these conditions, you will need to voluntarily liquidate your company instead.
Before you make a strike off application, you must close it down legally. Please see here for further details. One of the most important points to note is that any money held in the company bank account should be taken out and any assets held in the company’s name should be transferred and distributed to the shareholders. If this is not done, the assets will go to the Crown and you will have to apply to restore the company back to the register, which can be a costly and lengthy procedure.
As an alternative to striking off the company, it can remain on the register as a dormant company, leaving it available to be used again in the future.
Do contact us if you require any further clarification or advice.