There are several prerequisites to dissolving your business voluntarily, including:
- Not trading or changing the company name for three months
- Having no outstanding debts or legal claims against the company
- Not being involved in any insolvency procedures
- All assets being distributed to shareholders
- Company accounts and returns being up-to-date
You must inform all stakeholders of your intention to strike off your company from the register, and a notice is also placed in the Gazette. If there are no objections the application will be successful and the business closes down.
Why is voluntary dissolution one of the cheapest ways to close a company?
Voluntary dissolution is a director-led process that has no requirement for professional involvement. This contrasts with formal liquidation procedures that must be conducted by licensed insolvency practitioners (IPs).
Directors undertake all the steps to wind down their business, from closing their payroll to distributing company assets, and the application process can be carried out online if required.