A director may decide to close the limited company for various reasons ranging from taking on a new employment to retirement. Before closure, a final set of accounts will be required from the last accounting date to the last day of trading to calculate the Corporation Tax due to HMRC. If no trading occurred between the last set of accounts and the cessation date, then none will be necessary. The company must pay any bills that it can afford before and must not have been trading for the last 3 months, for this voluntary strike-off to be started. If the company has traded recently then the company would need to hire an insolvency team to liquidate the company.If the debt that a company owes cannot be paid, then it must enter a liquidation process, or it may be forced into compulsory liquidation if the company does not pay its creditors. This process can be avoided if the company applies for a company voluntary arrangement. When you appoint a liquidator, they take control of the company and the director will be unable to act for the company. Any information the liquidator requests must be given; a prosecutor can have you banned from being a director for up to 15 years and/or prosecuted if you do not behave appropriately. There must be a director of the company at the time of closure. Companies House will strike off a company if there isn’t a director but if you have a sizable amount of assets in the company then a strike off will make it difficult for the shareholders to manage these assets. To strike off a company once all assets have been dealt with, a DS01 form must be signed by most of the directors and sent to Companies House along with a cheque for £10. HMRC will also require notification, and any PAYE or VAT accounts should have their last reports sent to HMRC and closed, and any tax paid for during this time.
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