Closing a UK limited company is a legal process that rewards sequence and clarity. Whether the business has reached the end of its life, the contract work has stopped, or the company simply is no longer needed, the cleanest outcomes usually come from deciding the route early and wrapping up the detail before DS01 is filed.
The two main routes to closure
Before you do anything else, choose the route that actually matches the company you have today, not the company you wish you had.
Eligibility for voluntary strike-off
Use strike-off only if the company clears the real-world readiness test below:
The company has not traded or changed its name in the last three months.
There are no unresolved creditors, claims, or insolvency proceedings in motion.
Tax, payroll, and VAT obligations can be closed out before or alongside the application.
If any of those points are shaky, pause before treating strike-off as the default route.
If the company does not meet those criteria, liquidation or specialist advice is usually the safer next step.
Step-by-step: how to strike off your company
1. Stop trading and settle liabilities
Cease activity, pay creditors, deal with employee costs, and make sure the company is not still carrying live obligations.
2. Notify HMRC
File final Corporation Tax, VAT, and payroll submissions and tell HMRC that the company has ceased trading.
3. Notify creditors and interested parties
Anyone who could be affected by the strike-off should be told, including creditors, shareholders, employees, and pension trustees where relevant.
4. Prepare and file DS01
Get the required director signatures, pay the filing fee, and submit the application once the company is genuinely ready.
5. Wait for the notice period
Companies House publishes the Gazette notice and, if nobody objects, the company is dissolved at the end of the process.
What happens to remaining assets?
Any assets left in the company at the point of dissolution become bona vacantia and can pass to the Crown. That is why the cleanest closure plans deal with cash, equipment, domains, IP, and any other residual value before the company is struck off.
For modest distributions, shareholders may still be within capital-treatment territory. Once the amounts become more significant, it is worth pressure-testing the extraction route before you file.
Common mistakes to avoid
Filing DS01 before tax liabilities are settled
Treating dormant admin as if it is the same as genuine closure readiness
Leaving bank balances, assets, or receivables inside the company
Continuing to trade after the strike-off application has gone in