Company Strike Off

A compulsory strike off is the process by which a company is removed from the register of companies by a government agency, typically a Registrar of Companies.

This is  generally due to the company’s failure to comply with certain legal requirements or obligations.

It can happen for several reasons:

▪️When the company has not been in operation for a certain period of time.

▪️When it hasn’t filed its annual returns

▪️Or hasn’t paid fees or taxes.

The compulsory strike off process is initiated by the Registrar of Companies. If the company does not take steps to rectify the issue, it will eventually be struck off the register and cease to exist as a legal entity.

It’s important to note that a compulsory strike off has serious consequences for a company. Including the loss of its legal status and the inability to carry out business activities.

The directors and shareholders of the company may also face personal liability for the company’s debts and obligations.

A first gazette notice for compulsory strike-off is the first step in the process of removing a company from the register of companies. Normally due to the company’s failure to comply with certain legal obligations or requirements.

The notice is typically published in the official gazette by the Registrar of Companies. This announces  the intention to remove the company from the register.

The notice will include the name of the company, the reason for the proposed strike-off, and the date by which the company must take action to avoid being struck off.

Once the notice has been published, the company has a specified period of time to respond and rectify the issue that led to the proposed strike-off.

If the company takes no action or fails to rectify the issue, the Registrar of Companies may proceed with the compulsory strike-off and remove the company from the register.

Receiving a first gazette notice for compulsory strike-off is a really serious matter and should be addressed promptly by the company to avoid being struck off.

A Voluntary strike off is a process where  a company can be removed from the register of companies through its own decision. Rather than being removed by the Registrar of Companies due to non-compliance with legal requirements.

A company may choose a voluntary strike off if its:

▪️Ceased to trade.

▪️Has no assets or liabilities.

▪️Or is longer needed.

The process involves filing a formal request with the Registrar of Companies and providing evidence that the company meets the criteria for a voluntary strike off.

Once the request has been approved, the company will be removed from the register. The company directors will then need to take steps to wind up the company’s affairs and settle any outstanding debts or liabilities.

It’s important to note that a voluntary strike off is a formal process that must be followed correctly. This ensures the company is properly dissolved and that the directors and shareholders are not personally liable for the company’s debts or obligations.

We’d highly recommended you seek professional advice before pursuing a voluntary strike off.

A first gazette notice for voluntary strike-off is the first step in the process of removing a company from the register of companies through request made by the company itself.

The notice is published in the gazette by the Registrar of Companies, announcing the intention to remove the company from the register following the company’s request to do so. The notice includes the name of the company and the date by which any objections to the strike off must be received.

Once the notice has been published in the Gazette, creditors or shareholders, have a specified period of time to object to the strike off.

If there aren’t any objections or if the objections are resolved, the Registrar of Companies may proceed with the voluntary strike off and remove the company from the register.

If you strike off your company from the Company Register, you have to pass a number of hoops. These hoops will mean that your business:

Before applying to strike off your limited company, you must close it down legally. This involves:

▪️ Announcing your plans to interested parties and HM Revenue and Customs (HMRC)

▪️ Making sure your employees are treated according to the rules

▪️ Dealing with your business assets and accounts

When your company is dissolved, all the remaining assets will pass to the Crown (including any bank balances).