What is a company dissolution?

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What is a company dissolution?
Company dissolution is when a company is 'struck
off' the public register at Companies House.
There are a number of reasons you may disolve
your company, such as it may have been
successful but has now served its purpose, you no
longer have the time to dedicate to the business,
or even if it hasnt worked out and the company
has been sitting dormant.
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How do I dissolve my company?
You dissolve your company by submitting a DS01 to
Companies House which must be signed by the
majority of directors. A copy of this form must
then be sent to 'notifiable parties' such as
creditors, shareholders and employees. If you
hold any debts, the creditors may object to the
decision to dissolve your company until full
payment has been received.
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There are a number of steps you must take before
dissolving your company, such as

• Ensure business assets are distributed among all
  shareholders. It is crucial that this is done
  prior to applying for dissolution, as any
  remaining assets upon dissolution become Bona
  Vacantia and ownership automatically passes to
  the Crown.
• You must pay your employees their final wages and
  ensure you follow the rules if you are making
  staff redundant
• Pay for any outstanding Corporation Tax, PAYE, NI
  and settling any other tax liabilities

What do I have to do before dissolving my company?
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• File your company accounts and a company tax
  return with HMRC stating that these will be the
  final account due to plans of dissolution
• Ask HMRC to close down the companys payroll
  scheme and deregister for VAT
• Confirm that the company has paid any outstanding
  debts
• Close any company bank accounts
• Inform HMRC of your decision to dissolve the
  company. This must be done within 7 days of
  sending your application to Companies House

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