Dissolution

Dissolution is when the company is when an application is made to Companies House to strike the company off the register.

Advice should be taken to ensure that this is the best course of action for your company and if there are funds being distributed to shareholders that this is being done in the most tax-efficient way.

To enable a company to be struck off the company register the company must:

• Not have traded or sold off any stock in the last 3 months
• Not changed named in the last 3 months
• Not threatened with liquidation
• Not have any agreements in place to repay its creditors for example a Company Voluntary Arrangement (CVA)

To strike off the company you must notify the following individuals:

• shareholders
• creditors
• employees
• managers or trustees of any employee pension fund
• and director who has not signed the application form