Know about Company Strike Off
A company strike off is an action that an owner of a limited company takes to close the company by assuring that the company is debt-free and has no legal financial issues are going on. You can easily strike it off by letting the Companies House know about it.
Reasons to Strike a Company Off
There can be many reasons for companies to completely strike off. The main reason among all is that a company can extract the money, assets, and funds left in the company after shutting it down. This can be obtained by including a Member’s Voluntary Liquidation, a form of strike off, and the capital tax applied. By doing so, the company owner is relieved by paying a lot less tax than the original. An owner and the directors of the company may receive tax relief from 10% or £10m as well.
Some of the other reasons to go for a company strike off include:
A company is registered for a vehicle to be used in the future or having a used vehicle accounting scheme under the company’s registration and has no intention to continue it.
The directors and shareholders of the company are taking their ways off.
The company is a part of a reorganized group of companies and not needed any longer for operations.
Conditions to Fulfill Before a Company Strike Off
There are some conditions, a company has to follow before striking off a company.
- The company shouldn’t have involved in any operations in the last three months.
- The company is not undergoing any legal disputes.
- Make sure your company has not changed its name in the last three months.
- Be sure that no one is threatening the company for any legal action.
- There is no tax or any financial dues are pending.
- Make sure to submit company accounts to the Companies House.
The company cannot be struck off if there are outstanding liabilities left. In case of closing a company without clearing all the debts, the next owner of the company, when reopened, will let HMRC acknowledge the misconduct and HMRC may take serious actions against the directors of the company.
Keep the Records
You should keep all the records for at least 7 years after striking off your company. Also, the employer’s liability insurance policies should be kept for 40 years after striking off.
Company’s Assets after Striking Off
If you have not acquired the company’s assets before the closure, then all the assets or funds will go to Crown automatically. HMRC will cease the bank accounts and transfer all the remaining bank funds to the Crown as well.
The Process Duration
The process of company strike off takes up to three months to complete. As soon as you apply for it, Companies House issue a legal advertisement in the local gazette where it will stay for up to three months. If anyone feels to objectify the closure in the time period, they can and stop the process. Filing of company accounts is not a difficult task, and being the company’s owner, you can hire a good accountant and ask him to do this task in order to ensure that that you have done it right.
You will have to make sure that you have completed all the required steps otherwise your process can be objectified for various reasons and can be stopped. You must know how to file company accounts or you can hire accountants for the purpose.