Are you considering dissolving your limited company but unsure about the process? Submitting a DS01 form to strike off your limited company is an essential step in this process.
Striking off a company from the Companies House register can be a complicated and time-consuming process.
This comprehensive step-by-step guide will provide you with all the necessary information, from understanding the DS01 form to the post-dissolution responsibilities and company restoration.
Navigating the process of submitting a DS01 form to strike off your limited company can be daunting, but with the right knowledge and guidance, it can be a smooth and efficient process.
Let’s dive into the world of the DS01 form, its purpose, and the steps you need to follow to dissolve your company with ease.
- Understand the DS01 form and its purpose to ensure a legally compliant dissolution process.
- Comply with eligibility criteria, provide accurate information, and obtain signatures from directors before submitting the DS01 form.
- Notify interested parties and HMRC of strike off plans while adhering to post-dissolution responsibilities for legal compliance.
Understanding the DS01 Form and Its Purpose
The DS01 form is a crucial document used to apply for the dissolution of a limited company. Its primary purpose is to dissolve a solvent company that has not been engaged in specific activities for the past three months.
Before you embark on this journey, it is essential to seek professional advice and ensure your company meets the eligibility criteria and adheres to the prohibited activities associated with submitting a DS01 form.
Dissolving a company is not a decision to be taken lightly; it has significant implications, such as removing the organisation from the register within two months from the notification in the Gazette and closing the company’s Companies House account upon successful dissolution.
Company directors also relinquish notice of their entitlement to claim redundancy pay, and other statutory benefits.
Therefore, understanding the DS01 form and its purpose is vital in ensuring a smooth and legally compliant dissolution process.
Eligibility Criteria for Using DS01
To be eligible to use the DS01 form, your company must not have been involved in any business activities for the past three months.
Additionally, the form must be signed by a majority of the company’s directors. The DS01 form is a Companies House form that must be submitted to initiate the dissolution process.
Certain activities are prohibited prior to submitting the DS01 form, such as entering into a company voluntary arrangement with creditors.
Company directors are responsible for ensuring the company maintains solvency before submitting a DS01 form.
Make sure your company meets these criteria before proceeding with the dissolution process.
Activities Prohibited Before Submitting DS01
It is crucial to be aware of the activities that are not allowed before submitting the DS01 form. Your organisation must not have been engaged in certain activities for the preceding three months, especially if it is a private limited company.
Ensuring your company’s compliance with these requirements will prevent any complications during the dissolution process.
Obtaining and Completing the DS01 Form
Once you have confirmed your company’s eligibility and compliance with the prohibited activities, the next step is to obtain and complete the DS01 form.
The form can be accessed from the Companies House website. Filing final accounts with Companies House is a final accounts vital step. After that, you can apply online and submit the DS01 form.
When completing the DS01 form, ensure all necessary information is provided and all company directors sign the form.
Providing accurate information is crucial, as any inaccuracies may result in the form being returned by Companies House and subsequently delay the application process.
Required Information and Signatures
The information required for the DS01 form, such as the company name and registration number, is readily available on the Companies House website.
Moreover, a statement of compliance and the signatures of all two directors, are required for the form.
It is essential for companies with multiple directors that at least more than half of them sign the application before submission.
Failing to do so, will lead to unsuccessful filing of the document. Ensuring all required information and signatures are provided will streamline the dissolution process and minimise any potential delays.
Common Mistakes to Avoid
When completing the DS01 form, it is essential to ensure that all information provided is accurate, as incorrect information may result in the form being returned by Companies House, thus delaying the application process.
Double-check all the information and consult with your fellow directors to avoid any potential mistakes and ensure a smooth dissolution process.
Notifying Interested Parties and HMRC
After obtaining and completing the DS01 form, the next crucial step is to notify interested parties and HM Revenue & Customs (HMRC) of your company’s strike off plans. This is an essential step in maintaining transparency and ensuring all stakeholders are aware of the upcoming changes.
It is your responsibility to provide a copy of the application to all interested parties within a week. Additionally, if your own company ceases, has never traded or meets certain conditions, you should inform HMRC and submit the company tax return.
Who are the Interested Parties?
The interested parties in your limited company can encompass shareholders, directors, creditors, employees, customers, suppliers, investors, and any person or organisation that may be impacted by or have an effect on your company’s decisions or modifications.
Shareholders, for instance, have the right to vote on company decisions, while directors are responsible for managing the company’s operations and making decisions on behalf of shareholders.
Other stakeholders and companies that may be involved include creditors, employees, customers, suppliers, and investors. Ensuring all interested parties are informed of your company’s apply to strike off plans is crucial in maintaining transparency and avoiding potential legal issues.
Informing HMRC and Filing Company Tax Return
Informing HMRC of your company’s strike off plans can be done by sending a written communication to Corporation Tax (CT) Services or through the helpline.
When a DS01 form is submitted, HMRC will be notified automatically by Companies House. This communication is essential to submit the company tax return if the company has never traded or meets certain criteria.
Sending the DS01 Form and Fee to Companies House
After completing the DS01 form and notifying all relevant parties, the next step is to send the form and the associated fee to Companies House.
The fee for submitting the DS01 form is £10. It is essential to choose the correct Companies House address for your company’s registered location, either in Cardiff, Edinburgh, or Belfast.
It is important to note that sending a cheque for the DS01 form fee from the account of the company being struck off is not advisable. Carefully follow the guidelines for sending the form and fee to ensure a seamless dissolution process.
Addresses for Different Registered Locations
For companies registered in England and Wales, the DS01 form should be sent to Companies House, Crown Way, Cardiff CF14 3UZ.
For Scottish companies, the form should be sent to Companies House, 4th Floor Edinburgh Quay 2, 139 Fountainbridge, Edinburgh EH3 9FF. Ensure you send the form to the correct address to avoid any delays or complications.
Processing Time and Acknowledgment
The estimated processing time for the DS01 form is approximately seven days to three months from the time of submission. During this period, companies were established. House will take seven days to review your application and make a decision, so it’s essential to be patient and await their response.
Once your application is approved, your company will be struck off, and you can move your business forward with confidence.
Handling Objections and Withdrawal of Strike Off Application
In some cases, objections may be raised against your company’s voluntary strike-off application. The Gazette notice serves to invite any interested party to submit an objection to the company’s proposed dissolution. It is essential to understand the reasons for objections and how to address them effectively.
If your company is no longer eligible for voluntary strike- off, such as in the event of trading or in insolvency proceedings, or if the decision is made to make striking off application and retain the company, you may need to withdraw your strike off application. This can be done using the Form DS02.
Reasons for Objections and How to Address Them
Anyone who is interested can submit an objection against the proposal to strike off the company. Such objections must be taken into consideration.
Valid grounds for objection may include complaints from any outstanding creditors or debts, creditors or any other party who believes that the company is still operating. In such cases, supporting evidence, such as copies of invoices indicating ongoing trading, can be presented.
Should an objection be upheld by the Registrar prior to the two-month period elapse, the action to close the company will be suspended.
It is crucial to address any objections promptly and effectively to ensure a smooth dissolution process.
Withdrawing the Strike Off Application with Form DS02
If you need to withdraw your strike off application, you can do so immediately using the Companies House online service or by submitting a paper form DS02.
Please be aware that the £10 fee sent with the application form for DS01 is not refundable in the event of an application withdrawal. Therefore, it is essential to evaluate all possible options before filing the application form.
Ensure you have valid reasons for withdrawing the application and follow the correct procedures to avoid any issues.
Post-Dissolution Responsibilities and Company Restoration
Once your company has been dissolved, there are still some post-dissolution responsibilities to be aware of, such as retaining business documents and insurance policies for employees.
Additionally, in some cases, you may need to restore a struck-off former company number, which can be done either administratively or via a court order.
Fulfilling these post-dissolution responsibilities is essential to ensure the company in compliance with legal requirements and protect the interests of all stakeholders, including former employees, creditors, and shareholders.
Record Retention and Business Asset Distribution
The government website states that records must be retained for six years after the final company financial year to which they relate.
Additionally, business documents, such as invoices, receipts, and company bank statements, should be kept for seven years after the company is dissolved.
If your company employs personnel, a copy of the employer’s liability policy and schedule should be retained for 40 years. Ensure you keep all relevant documents and records as required by law to avoid any potential legal issues.
Restoring a Struck-Off Company
In some cases, you may need to restore a struck-off company. Restoration can be achieved either through administrative restoration to the Companies House register, or via a court order, depending on the circumstances of the dissolution and companies house.
The fee for administratively restoring a struck-off company is £100, while restoring a company through a court order can be lengthy and expensive. Consider your options carefully and seek professional advice if necessary.
In conclusion, striking off a company is a complex process that requires a thorough understanding of the DS01 form, its purpose, and the various steps involved.
From ensuring your company meets the eligibility criteria, completing the DS01 form, notifying interested parties and HMRC, to handling objections and post-dissolution responsibilities, every aspect of the process must be handled with care and attention to detail.
This step-by-step guide has provided you with the necessary information to navigate the dissolution process confidently. Keep this guide at hand as you embark on your journey to dissolve your limited company, and remember to seek professional advice whenever needed.
With the right knowledge and guidance, you can complete the company strike-off process smoothly and efficiently, allowing you to keep business assets and move forward with a clear path ahead.
Frequently Asked Questions
How do you strike off a company DS01?
To strike off a company DS01, you must submit the completed form to Companies House. It needs to be signed by a majority of the company’s directors and must include any assets such as bank accounts that have been closed and any other rights owned domain names that have been transferred.
After this has been approved, a second notice will then be published in the relevant Gazette, giving at least two months’ notice before the process is complete.
How do you get a limited company struck off?
Getting your limited company struck off requires completing and submitting Companies House form DS and form ds01 only. The full form ds01 should be signed by a majority of the company’s directors and any outstanding assets or outstanding liabilities, must be addressed prior to submission.
Following the process correctly should lead to successful deregistration from the register of companies.
How do I send DS01 to HMRC?
To send your DS01 to HMRC, you’ll need to mail the form and cheque to either Companies House in Cardiff if your business is based in England or Wales, or Companies House in Edinburgh if your business is based in Scotland.
How do I notify HMRC of a company strike off?
To formally notify HMRC of a company strike off, you should write to them as soon as possible. Make sure to include a letter from shareholders confirming the decision to strike off the company and other pertinent documents, such as your final annual accounts and tax return.
Additionally, if you notice you have an account in a payroll scheme, you should close it before sending the notification.