Strike Offs & Dissolutions

In the United Kingdom, a company can be removed from the Companies House registry and effectively cease to exist via striking off or dissolution.

​

Striking off is the procedure for removing a company from the Companies House register if it is believed that it is no longer in operation or trading. This can happen if the company has not filed its annual accounts or confirmation statement, or if it has not responded to Companies House inquiries. The procedure is sending a notification to the company at its registered office address; if no answer is received within a certain time frame, the company can be removed from the register. Striking off is a reasonably simple and inexpensive procedure, however it does not liberate the firm from any remaining debts or liabilities.

​

Dissolution is a more official process for winding down up a company, which incorporates a voluntary or mandatory liquidation. This may be launched by the company's directors or shareholders, as well as by a court order. In a voluntary liquidation, the company's assets are liquidated, and the revenues are used to pay off any outstanding debts and liabilities; any residual cash are then disbursed to the company's owners. In a compulsory liquidation, the court appoints a liquidator to supervise the company's dissolution. Once the business's affairs have been completely settled, the liquidator will submit an application to Companies House to liquidate the firm.

​

Both striking off and dissolution can have substantial legal and financial ramifications, therefore it is crucial that businesses obtain the counsel of a lawyer or financial expert before pursuing either option.