There are a number of reasons why a company will be struck off the register. If the company is no longer needed, perhaps the directors are entering retirement with no replacements or the company is dormant or non-trading. A company may apply to the registrar to be struck off the register.
When a company is struck off the register, the registrar won’t usually pursue any filing penalties which are outstanding. However, if the company applies to be restored to the register at a later date, the registrar may chase outstanding monies due. An application to be struck off the register can be made by the company’s directors or the majority of the directors. Sections 1004 and 1005 of the Companies Act 2006 state circumstances under which a company can’t apply to be struck off the register. During the last three months a company should not have traded or changed the company name. There are many other regulations which apply to a company wishing to be struck off the register.
A company’s affairs should all be dealt with before applying to be struck off the register; the company bank account must be closed and creditors and members should be informed of the decision to apply. Form DS01, striking off application by a company should be completed and signed by all the directors, or the majority of directors if there are several. If the application is successful, the information will be registered and put on the public record of the company. The process for striking off a company is complex and professional advice may be required.
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