How to Strike Off a Limited Company from Companies House

Thinking about closing your limited company? Striking off your business at Companies House can be a straightforward way to end things—but only if you do it right. There are strict rules, legal hoops, and potential pitfalls. This guide walks you step-by-step through the entire process, from prepping your company for dissolution to handling creditors, taxes, and directors’ obligations. By the end, you’ll know exactly how to strike off your limited company safely, legally, and with your peace of mind intact.

Striking off is the official process of removing a company from the Companies House register. Once struck off, your company ceases to exist as a legal entity. This is most suitable if your company has stopped trading, has no assets, and has no outstanding debts or liabilities. It’s a voluntary route (under Section 1003 of the Companies Act 2006), different from being forcibly removed (compulsory strike-off) by Companies House.

You should only apply for strike off if your company meets specific conditions: it hasn’t traded or sold off any stock in the last three months; hasn’t changed its name in the last three months; and has no ongoing legal proceedings. Any remaining assets, including bank balances, will pass to the Crown (bona vacantia) if not properly distributed before the strike off is completed. This is why planning is so vital.

For many small business owners, voluntary strike off is a cost-effective way to close a dormant or unnecessary company. However, if you have significant debts, employees, or complicated affairs, liquidation might be more appropriate. Understanding the distinction will save you trouble down the line, both legally and financially.

Before you apply to strike off, you’ll need to bring your company’s affairs to a clean, tidy close. This includes settling all debts, paying off creditors, closing company bank accounts, and distributing any remaining assets to shareholders. HMRC, suppliers, employees, and anyone owed money must be paid—otherwise, your strike off can be challenged and reversed.

It’s crucial to file any outstanding accounts and tax returns up to the date you cease trading. Failing to do so may trigger penalties from both Companies House and HMRC. Make sure you’ve accounted for Corporation Tax, PAYE, VAT (if registered), and any other tax obligations. Inform HMRC in writing that your company is no longer trading and is applying for strike off.

Don’t forget about statutory records—these must be kept for at least six years after dissolution. This includes company registers, board minutes, and financial records. Directors remain responsible for the accuracy of these records, even after the company is struck off.

• Pay off all outstanding debts and liabilities
• File final accounts and tax returns with HMRC
• Distribute assets to shareholders before dissolution
• Close company bank accounts after all transactions are complete
• Inform all interested parties (creditors, employees, landlords, etc.)

The voluntary strike off process is governed by strict legal steps. The main form to use is DS01, available from GOV.UK or Companies House. You can submit this online or by post, but the process is not just about paperwork—it’s about proper notification and transparency.

You must inform all ‘interested parties’ within seven days of submitting the DS01 form. This includes shareholders, creditors, employees, pension managers, and HMRC. Failure to notify can result in criminal prosecution and personal liability for directors. Companies House will publish a notice of your intention in The Gazette, giving at least two months for objections to be lodged.

If no objections are received, Companies House will strike the company off after the notice period. However, if someone raises a legitimate concern—such as an unpaid debt—the process is paused or cancelled. You must remain alert to correspondence during this period to resolve any issues quickly.

One of the most overlooked (but crucial) legal steps is notifying all interested parties. The law requires you to inform anyone who might be affected by the company’s dissolution—including HMRC, creditors, employees, landlords, pension scheme managers, and shareholders. Written notice must be sent within 7 days of filing the DS01 form.

HMRC expects to be told both that the company has ceased trading and that you’re applying for strike off. If the company was registered for VAT or as an employer, you should deregister and settle all final liabilities. Creditors must be told—don’t assume nobody will notice. Even a small unpaid bill can trigger an objection and derail the process.

If you fail to notify any interested parties, directors can be prosecuted and held personally liable for unpaid debts or losses. Always keep copies of all correspondence as proof. This protects you if anyone claims they weren’t told about the dissolution.

• Send written notice by recorded post or email (keep proof of delivery)
• Include a copy of the DS01 form or details of the application
• Notify HMRC by post (Corporation Tax, PAYE, VAT as relevant)
• Inform all creditors, even if the debt is small or disputed
• Contact pension providers, landlords, and employees

Many strike off applications are delayed or rejected due to avoidable mistakes. The most common issue is failing to settle debts or telling all interested parties. Creditors, including HMRC, can object at any point during the two-month Gazette notice period. If this happens, Companies House will suspend or stop the process until the objection is resolved.

Another frequent pitfall is not distributing all company assets before strike off. If any money or property remains in the company when it’s dissolved, these assets pass to the Crown under bona vacantia. Recovering them later is a costly and uncertain process, often requiring legal action.

Directors sometimes forget about statutory filings or ongoing legal obligations. If you have not filed final accounts, confirmation statements, or paid tax, you could face fines—even after dissolution. In serious cases, directors can be disqualified or face criminal prosecution.

• Leaving unpaid debts (triggers objections and personal liability)
• Not informing all interested parties within the legal timeframe
• Failing to distribute assets before dissolution (assets lost to the Crown)
• Overlooking final tax returns, VAT deregistration, or PAYE closure
• Ignoring statutory record-keeping duties after strike off

Before you strike off, tie up all tax affairs. File a final Corporation Tax return up to your cessation date, pay all outstanding liabilities, and inform HMRC you’re closing the company. De-register for VAT and PAYE if applicable. If you owe any tax, clear the balance—otherwise, HMRC can object to your strike off.

Any assets left in the company when it’s struck off—bank balances, vehicles, stock, intellectual property—become bona vacantia. This means they pass to the Crown and can only be recovered through a formal (and costly) restoration process. Distribute assets to shareholders before submitting your DS01 form. You may need to consider ‘capital distribution’ rules: any distributions over £25,000 are treated as income and taxed accordingly unless you use a Members’ Voluntary Liquidation (MVL), which can be more tax-efficient for larger sums. Members’ Voluntary Liquidation (MVL)

Final accounts and statutory filings must be up to date. Even if your company has stopped trading, you must file a final set of accounts and a confirmation statement unless you apply for strike off first. Late or missing filings can result in fines or the application being rejected.

Once your company is struck off, it is legally dissolved. It can no longer trade, own assets, employ people, or enter into contracts. The company’s name is removed from the Companies House register, and its existence as a legal entity ends. However, this is not always the end of your responsibilities as a director.

Directors and former officers must keep company records for at least six years after the dissolution. This includes financial accounts, bank statements, VAT records, and board minutes. HMRC or other authorities can request access to these records for tax or legal investigations even after the company no longer exists.

If assets were missed or new liabilities surface, it is possible for creditors (including HMRC) or other interested parties to apply to have the company restored to the register—sometimes years later. Directors may also be personally liable for debts if they acted improperly during the strike off process.

• Maintain statutory records for 6 years post-dissolution
• Deal with any post-strike off correspondence from Companies House or HMRC
• Understand that creditors can apply for company restoration if new issues arise
• Seek professional advice if any issues or claims surface after strike off

The cost of voluntary strike off is low—just a £10 Companies House fee for the DS01 application. However, the real costs come from preparing the company (settling debts, distributing assets, final accounts, and professional advice if needed). Most applications, if straightforward, take about three to four months from start to finish, including the statutory two-month objection period.

If your company has more than £25,000 in assets to distribute, striking off may not be the most tax-efficient route. A Members’ Voluntary Liquidation (MVL) lets you distribute assets as capital (potentially qualifying for Business Asset Disposal Relief), but costs are higher—typically £3,000 to £5,000 plus VAT for a licensed insolvency practitioner.

If your company is insolvent (unable to pay its debts), you cannot use voluntary strike off. Creditors can and will object. In that case, you must use Creditors’ Voluntary Liquidation (CVL), which is a formal insolvency process with much stricter rules and higher costs. Always seek advice if in doubt.