Check If You Qualify

What is Company Strike Off?

Reviewed 12th February 2024

What is the process to strike off a limited company?

If you no longer need a limited company, Company Strike Off, also known as Dissolution, is a simple and inexpensive way to close it down. You can apply to Companies House to strike the business off the official register of companies. Once it has been struck off, it will cease to exist as a legal entity. However, Company Strike Off is not appropriate for every business. If your company has debts or significant retained profits, other closure methods will be more suitable.

What does striking off a company mean?

There are several reasons why you might want to close a limited company. You could be ready to retire or want to move on to a new challenge, or the company may never have traded and now you’re ready to close it down. Whatever the reason, Company Strike Off allows you to bring an end to the company by following a simple online process and paying a fee of just £8. You can also complete the paper form DS01 if you cannot apply online.

You can strike off or dissolve your limited company if it:

If your company meets the criteria, you can apply to Companies House to start the process. As long as all the information you provide is correct, a notice will be placed in the Edinburgh Gazette (for companies incorporated in Scotland) to inform interested parties of your intention to dissolve the company. If there are no objections within two months, a second Gazette notice will be published and the company will be struck off.  

Why might someone object to Company Strike Off?

The notice strike off is published in the Gazette to inform interested parties and give them the chance to object. The most common objectors are creditors like trade suppliers and HMRC. Other common third-party objections include:

If an objection is made and upheld by the registrar, the strike off will be suspended until you have resolved the issue. 

Can I strike off a company with debts?

You cannot use strike off to try and escape your debts. One of the main requirements for Company Strike Off is that your business is solvent and can repay all its creditors. If you try to dissolve a limited company with debts, your creditors will usually object to the strike off so they can take action to collect the money they are owed. 

If there are no objections and you dissolve a company with debts, your creditors can still take action against you. They can apply to the court to restore the company to the register and claim the money they are owed. That will leave you in a very precarious position, as trying to strike off an insolvent company can lead to severe penalties, including fines and personal liability for the business’s debts.   

If your company has debts it cannot repay, you will need to close the company through a formal insolvency process such as a Creditors’ Voluntary Liquidation (CVL).  

Is strike off the most cost-effective way to close a limited company?

Although Company Strike Off is inexpensive, it may not be the most cost-effective way to close your company. If your company is asset-rich or has substantial cash reserves, a Members’ Voluntary Liquidation (MVL) may be more cost-effective.

The main advantage of an MVL is that the profits you extract from the company are subject to capital gains tax rather than income tax or dividends tax. If you’re also eligible for Business Asset Disposal Relief, you’ll pay just 10% tax on qualifying assets. Although £25,000 is the legal threshold for a Members’ Voluntary Liquidation, the liquidator’s fee means that you’ll typically need around £35,000 in retained profits for an MVL to be more cost-effective than strike off.  

What is compulsory strike off?

As well as voluntary strike off - when a company director chooses to dissolve their company - Companies House can also forcibly dissolve a limited company. Known as compulsory strike off, it most commonly occurs when companies do not comply with Companies House regulations. That could be by repeatedly failing to file the company’s annual accounts or failing to notify Companies House of a change in address. Companies House must have grounds to believe the company has ceased trading before initiating the process.

The consequences of compulsory strike off can be serious. Contracts with suppliers and customers will be at risk and the company will find it very difficult to secure funding to resolve the situation as, legally speaking, the company no longer exists. Any assets you have not transferred away from the company before it is struck off will also become the property of the crown.  

Need advice?

Are you unsure whether Company Strike Off is the right way to close your limited company or perhaps you have debts you’re struggling to repay? Contact our business debt advisers to arrange a free, no-obligation consultation. We’ll discuss the company closure methods available to you and guide you on the most suitable approach to take.

Debt Report

Get your instant Debt Report today

Find out which debt solution is best for you

Our debt report is completely easy to use and is a great starting point for anyone with over £5000 of debts looking to take control of their debt issues. By providing us with details of your incomings and outgoings we can suggest the most appropriate way forward for you.

Get Your Report
Debt Report V2

Related News

Debt Levels Soaring across Scotland, New Figures Show Debt Level Rising

Debt Levels Soaring across Scotland, New Figures Show

Levels of unsecured debt in Scotland increased dramatically during 2022 as the cost of living crisis took its toll on household finances.

Nearly Half a Million Scots Facing ‘Profound Financial Hardship’ Financial Hardship

Nearly Half a Million Scots Facing ‘Profound Financial Hardship’

Close to half a million Scots are in a position of profound financial hardship, according to a new set of figures.

Scots with Disabilities Urged to Check Eligibility for New Benefits Scottish Man In Wheelchair

Scots with Disabilities Urged to Check Eligibility for New Benefits

Disabled people in Scotland are being urged by the government to check whether they might be eligible for benefits that could help make their life a little easier.

map pin


2 Bothwell Street, Glasgow, G2 6LU

The Team

Meet our qualified Scottish based team

100% Confidential Advice

Chelsea Williams David Tannock Sharon McDougall Square

We'll give you a call

Our Scottish based team can help advise you on your debt problems.

Here at Scotland Debt Solutions we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See our Privacy Policy.

The team

Meet our qualified Scottish based team

100% Confidential advice

Chelsea Williams Thomas Mckay Kelly Jones Tannock1

Our Insolvency Practitioners are regulated by ICAS or the IPA and our firm is authorised and regulated by the Financial Conduct Authority

Fees and Information: There are fees associated with our services. These will be fully explained before entering into any of the personal debt solutions referred to on this website. Full details of our fees and how these are charged are fully explained to you prior to you committing to any particular service.

ICAS Insolvency Practitioners