Company strike off (dissolution)
A company strike off, also called dissolution, removes a company from the Companies House register using form DS01, and costs just a small filing fee. It is the cheap, simple way to close a company, but only when the company is solvent or dormant with no significant debts. If the company owes money, creditors, and HMRC in particular, can object and stop the strike off, and you must notify creditors in any event. Crucially, striking off does not write off company debts, and since the Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Act 2021 the Insolvency Service can investigate the conduct of directors of dissolved companies and seek disqualification. Using strike off to walk away from debts is therefore risky and can backfire. If your company has real liabilities, a Creditors Voluntary Liquidation is usually the proper and safer route. Check first with a Licensed Insolvency Practitioner. Companies House; Directors Disqualification (Dissolved Companies) Act 2021
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Why a cheap strike off can be a false economy
If the company has debts, an attempted strike off is likely to be objected to by HMRC or another creditor, and can expose you to investigation. Where there are real liabilities, a CVL is the correct route, and our strike-off objection risk checker gives you a quick read on whether a DS01 is realistic.
The numbers behind this
See the live official figures on our strike-off objection tracker. How often strike-off applications are objected to and suspended. All figures come from named official sources on our UK business distress data hub.
Common questions
Can I strike off a company with debts?
You can apply, but creditors including HMRC can object and usually will, and it does not clear the debts. If the company is insolvent, a CVL is the proper route. Take advice before filing a DS01.
Can I be investigated after striking off?
Yes. Since 2021 the Insolvency Service can investigate directors of dissolved companies, including over misuse of Bounce Back Loans, and seek disqualification.
Can you reopen a company after it has been struck off?
Sometimes. A dissolved company can be restored to the register, either by an administrative restoration application to Companies House or by a court order, usually within six years of dissolution. Restoration is often sought by a creditor chasing a debt or to recover an asset that passed to the Crown as bona vacantia.
Is it bad if a company is struck off?
For a solvent, dormant company with no debts, a clean strike off is a normal, low-cost way to close. It becomes a problem when the company owes money, because creditors can object, the debts are not cleared, and directors can be investigated. In that situation a CVL is the safer route.