If a company stops trading or goes out of business This advice applies to England Print. Get help Contact the Citizens Advice consumer helpline on if you need more help - a trained adviser can give you advice over the phone. Did this advice help? Yes No. Why wasn't this advice helpful? It isn't relevant to my situation. It doesn't have enough detail. I can't work out what I should do next. I don't understand. You've reached the character limit. Thank you, your feedback has been submitted.
In this section. They will help you determine the most appropriate solution and ensure all of your legal obligations are met. If you have a business that has ceased trading but you may need again, you can register it as dormant. You may choose to keep a limited company dormant to protect a brand, prevent the same name being used by another business or to hold intellectual property.
To make an active company dormant, you must cease trading, close any existing bank accounts and ensure that all bills, liabilities and bank charges are paid in full. You should also cancel standing orders and direct debits and advise suppliers and customers that the business is closing. For the company to remain dormant, no transactions or trading can occur and you must file dormant accounts with Companies House every year, which should include a balance sheet and an annual confirmation statement.
To make the company active again, just contact HMRC within three months of recommencing trading. If your company is solvent i. The money raised by the sale of assets will be distributed among shareholders according to their percentage of the shareholding. Form DS01 can then be completed and submitted to apply for strike off, and as long as the form has been completed correctly and no one objects, the company will be struck off the Companies House register and will cease to exist.
This represents a swift and cost-effective way to close a business and is often used by company directors who are retiring, moving into employment or want to embark on a new venture. As a formal liquidation procedure, a licensed insolvency practitioner must be appointed to handle the process. The company will then be struck off the Companies House register and will cease to exist. If a company that ceases to trade is insolvent i. If an insolvent business has debts that it cannot or refuses to repay, it can be forced to cease trading by creditors such as suppliers and HMRC.
They can issue a winding up petition that will be heard by the court. If the judge rules against your business, a winding up order could be made and you will be forced to cease trading immediately and the company will be liquidated. A liquidator will be appointed and the assets of the business will be valued and sold and the creditors will be repaid according to a strict hierarchy. The company will then be struck off the Companies House register.
The liquidator will also carry out a full investigation into the reasons for the insolvency and the conduct of the directors. If acts of wrongful trading or misconduct are discovered, the directors could be made personally liable for company debts and be disqualified from acting as a director for up to 15 years. You must inform HMRC that the company has ceased trading by contacting your local corporation tax office at your earliest opportunity.
You will be able to find the relevant details on any official correspondence you have received from HMRC, by calling the corporation tax helpline on or by speaking to an HMRC adviser online. There is no need to tell Companies House that your company is no longer trading until your annual accounts are due.
Ceasing trading cannot be used as a method to avoid repaying your debts. Even if the company is successfully dissolved and struck off the Companies House register, creditors can still apply to the court to have the company reinstated.
They can then take action to enforce the payment of the debt or force the company into compulsory liquidation. That could lead to a number of negative outcomes for the company directors, including personal liability for the debts the company cannot afford to repay.
If the company is solvent, the only way to cease trading without the risk of creditor claims and enforcement action is to repay all of its debts before it is made dormant or dissolved. Updated: 17th September What is the easiest way for a limited company to cease trading?
Winding Up Petition. Winding up Process and Procedure. How to Wind up a Company. Cease Trading a Limited Company. Closing a Business. Jonathan Munnery Partner. Please leave this "website" field blank. Meeting Request. Book your free consultation. Our Offices. Please select a date. Chosen Date.
Please enter your name. Please enter your email. Please enter a phone number.
0コメント