Closing a limited company in the UK is usually straightforward once the right route is clear. In most cases, the first question is whether the company is solvent or insolvent, because that determines whether strike off is realistic or whether a formal liquidation process is more appropriate.
For many small business owners, voluntary strike off is the simplest and cheapest option. But it only works if the company has stopped trading, has no unresolved creditor issues, and meets the Companies House conditions for dissolution.
This guide explains the main ways to close a UK limited company in 2026, the steps involved, the common mistakes to avoid, and when to speak to a licensed insolvency practitioner. It is written for directors of small and medium-sized businesses who want a practical route forward based on current official guidance.
The main ways to close a UK limited company
There are four routes most directors need to know about: voluntary strike off, members’ voluntary liquidation (MVL), creditors’ voluntary liquidation (CVL), and administration in more serious distress situations.
| Route | Best for | Typical position |
|---|---|---|
| Voluntary strike off | Small solvent companies with no ongoing debts or disputes | Company has stopped trading and can be dissolved from the register. |
| Members’ voluntary liquidation (MVL) | Solvent companies that want a formal wind-down | Directors can pay debts in full and want a licensed insolvency practitioner to close the company properly. |
| Creditors’ voluntary liquidation (CVL) | Insolvent companies | Company cannot pay its debts and directors need a formal closure route. |
| Administration | Companies under serious pressure that may still be rescued or sold | Used when the company needs legal protection from creditor action while options are explored. |
For most owner-managed businesses, the real decision is between strike off and liquidation. Strike off is usually the cheapest route, while liquidation is more appropriate when the company has debts, creditor pressure, or more complex asset and tax issues.
When strike off is the right option
A company can usually apply for strike off only if it has not traded or sold stock in the last 3 months, has not changed its name in that period, is not being threatened with liquidation, and has no arrangement with creditors such as a CVA.
That makes strike off a good fit for businesses that have simply come to the end of the road: a side venture that never took off, a consultancy that has already wound down, or a trading company that stopped operating and has settled what it owes. It is not designed as a shortcut for companies that are struggling with unpaid debts.
Before applying, directors should also deal with the company’s assets. Companies House specifically warns directors to close bank accounts and transfer items such as domain names before filing, because access to company money and property can be lost once the company is dissolved.
How to strike off a company step by step
- Stop trading and make sure the company meets the strike off conditions.
- Bring tax affairs up to date, including the final Company Tax Return and any outstanding Corporation Tax, VAT, or PAYE matters.
- Deal with company assets, including cash in the bank, equipment, intellectual property, and domain names, before dissolution takes effect.
- Complete the DS01 application. A majority of directors must sign, and if the company has 2 directors, both must sign.
- Submit the application online or by post. In 2026, the online fee is £13 and the paper fee is £18.
- Send a copy of the application within 7 days to interested parties such as creditors, employees, shareholders, managers or trustees of employee pension funds, and any directors who did not sign the form.
- Wait for the notice in The Gazette. If no objection is raised, the company is usually struck off after the notice period has passed and a second Gazette notice is published.
Strike off is usually the low-cost route, but it only works when the paperwork and timing are clean. A company with unresolved tax issues, creditor objections, or money still sitting in the business may need more careful handling first.
What strike off costs in 2026
Companies House states that the digital voluntary strike off fee is £13 from 1 February 2026. A paper DS01 application costs £18 and generally takes longer to process.
That filing fee is only part of the real closure cost. Directors may also need accounting support for final filings, payroll close-down work, VAT deregistration, and advice on extracting remaining funds or assets before the company disappears from the register.
Strike off vs liquidation
A solvent company that simply wants to disappear from the register often uses strike off. A solvent company with larger retained profits or assets may still choose an MVL, especially where a formal process and structured asset distribution make more sense.
An insolvent company usually should not rely on strike off. If it cannot pay debts as they fall due, creditors can object to dissolution and directors are normally better served by taking advice on CVL or another formal insolvency route.
| Question | Strike off | Liquidation |
|---|---|---|
| Is the company solvent? | Usually yes. | Can be solvent (MVL) or insolvent (CVL). |
| Cost | Lower filing cost. | Usually higher because an insolvency practitioner is involved. |
| Complexity | Simpler for straightforward closures. | More formal and structured. |
| Creditor issues | Poor fit if there are disputes or unpaid debts. | Better suited where debts or creditor pressure exist. |
Dormant is not the same as closed
A dormant company still exists. It remains on the Companies House register and usually still has ongoing filing duties, including dormant accounts and a confirmation statement.
That matters because many directors stop trading and assume the company is effectively finished. In reality, leaving a company dormant instead of closing it can create avoidable compliance work and future penalties if filings are missed.
Common mistakes directors make
A common mistake is applying too early. If the company still has tax refunds pending, open bank accounts, live assets, or unresolved tax obligations, the strike off can be delayed or become messy.
Another mistake is treating strike off as a solution to insolvency. If creditors are likely to object, or the company is already under financial pressure, the better route is often formal liquidation rather than hoping the company quietly disappears.
Directors also overlook the notice requirement. Official guidance says copies of the application must be sent to relevant interested parties within 7 days, and failure to do so can create legal risk.
A practical checklist before closing your company
- Confirm whether the company is solvent or insolvent.
- Stop trading and check the 3-month strike off conditions.
- Finalise Corporation Tax, VAT, PAYE, and payroll issues.
- Remove or transfer company assets before dissolution.
- Close company bank accounts at the right stage.
- Make sure the correct directors sign DS01.
- Send the application to interested parties within 7 days.
- Keep copies of filings and closure records in case questions come up later.
Should you get help?
Many simple strike offs can be handled without a long legal process, especially where the company has already stopped trading and has no complications. But where there are debts, retained funds, tax questions, or uncertainty about the right route, professional support can reduce delay and help directors avoid preventable mistakes.