Closing a UK Limited Company: A Comprehensive Process Guide

so how do you close down a UK limited company we know that there are over 500 000 companies closed down each year and it's probably even more dormant companies that you don't need and should be closed down so how do you do it in a practical way well this video will do exactly that go check it out hi everyone my name is Simon mischevich from optimize accountants and in this video I'm going to be talking about how you can close down a limited company but what things you need to consider before doing so as I said are from the outset 500 000 companies more are being closed down in the UK each year and we've probably already at that point in 2022 because of the recession fears but how do you do it and what things do you need to look at so first of all what we need to look at is the process of closing down a UK company we'll get into the nuts and drags of the process steps but let's have a look at what you need to think about you need to make a payment of 10 Pounds not a lot of money to be fair but you're close down a company that's a fee that you pay to companies house you need a ds01 form which you can obtain from the company's house or you can do it online and I'll give you the URL in the description box below I'll also try and put a link above me as well your net assets needs to be less than 25 000 pounds why do you need that well if your net assets are more than 25 000 pounds and you have creditors then you possibly will have to go through some sort of liquidation process which can be quite costly I have seen prices go from 5000 to 100 000 for liquidation so you do need to know well I've got more than 25 000 can I get it down to less than 25 000 so I can close down the company the answer is yes make sure you speak to a tax specialist for limited companies and dissolutions we can certainly help you with that and a 30 minute tax call will will help you with that process so there you go people will close down a limited company for many reasons and what you need to think about here I'm just going to touch on that people might be fearing the recession people may have a company that had a great idea never really took off and then therefore it just lingered as a dulwich company and someone would have said to them you don't need it to close it down people think having a UK limited company sitting there is dormant is good for reputation quite opposite really you're not saying you've done anything in that company therefore it's just been lingering that doesn't say too much about your reputation so you know closing down a company is necessary for many people now as it says there this is coming from companies House website the link again is in the video description box below so please feel free to get that but I want to take you through the form itself so as I said there you need a ds01 form and that is to Strike It Off um warning to all interested parties this is an important notice and should not be ignored I want to take my time over this the company name has applied to the red star to be struck off so it is out there in the public media that this company that you wish goes down will be dissolved now companies has has to give notice that this company will be dissolved to interested parties and that's what this is all about so let's kick off then what do you need to have so your company number which you should have that's your company reference number from company's house so you should be able to have that and then your full address that's a full company name in full should include the word limited or LCD depending on what you have chosen make sure you get that right so you can compare what you think it is against what's already on companies house about your company but in basic details your name your surname sign it put the signature date it cannot be backdated so don't think you can backdate a dissolution no you cannot it needs to be in a future date so make sure you put that on place was going through this if you're nervous you're uncertain about this process feel free to look at that code um to look to book a tax consultation whether it's at optimized accountants and will help guide you through the dissolution of your limited company step by step so you can feel confident and comfortable with the approach you must send copies of all applications to notifiable parties and creditors creditors if you've got a bounce back loan for instance you need to say to them hey look I'm thinking about closing down the company now we know that there are guarantees in place from the government for the bounce back loan but you still have to notify them if you have suppliers that you owe money to you have to notify them as well you must send copies to anyone who becomes note notifiable uh party within seven days of this taking place and now you can pause this by the way but it does talk about failure to notify interest of the party is an offense which is punishable by up to 12 months in prison now I know people out there say well how will they check well this is an official documentation and if you're saying I'm closing down the company to get out of my debts and liabilities actually you could face prison so do make sure that you take your time and get this right completing a DSO one form yourself online is dead easy but it's also dead easy to get it wrong um so be careful as I mentioned there is a fee of 10 Pounds to strike off your company you can do that online or indeed post it often we would say do it online but if you want to send your DSO one form you can send it to this address so you might want to just pause this video and get the address for yourself um checklist in your checklist you will have to say to them the company name and number matches the public register again it's so important when you're completing these forms that not just the number is correct but the full name as well we have seen come back from company's house where someone's put limited instead of LTD because that is two separate companies and you're trying to close down someone else's company which they're not going to be too happy about so you have to be taken take care the correct number of current directors have signed and dated the form so you've got two directors both have to sign it but it does say here um one director if there is only one director both if there are two so please do note that you have to do that the majority if there are more than two out of six four directors must sign so again if you have a dispute with a director you need to have that resolved and you probably still need to have them sign this this document continue with the checklist what else do you need to think about you have included a printed name and dates and signatures so you not only just need to put your data to maybe sign it but check that your signature is illegible and in black is preferable you have included a continuous sheet not many people will do that and you have included the correct fee again pretty self-explanatory [Music] foreign [Music]

Channel: Simon Misiewicz US & UK Taxes

Views: 13,039

Keywords: close a limited company, close a UK company, close a UK limited company, DS01 form, Companies House DS01 form, ds01 companies house, voluntary stike off company, ltd company strike off, winding up petition, limited company, company closure, company voluntary arrangement, Optimise Accountants, Simon Misiewicz, Closing a UK limited company, Form DS01, UK company dissolution, company closure process, UK business taxes, company strike off, Companies House filing.

Id: 7497eBoi_sE

Length: 7min 48sec (468 seconds)

Published: Thu Dec 08 2022