A guide, not advice. This explains how things generally work. A licensed insolvency practitioner will tell you what applies to your company or to you.
Company strike off and dissolution - when it's suitable and when it isn't
Strike off is the administrative route for dissolving a company via Companies House - cheap and simple, and entirely appropriate for a clean, solvent, largely empty company.
The process
The company must have ceased trading (and not changed its name) for three months; directors file form DS01; the application is published, giving anyone two months to object; and absent objection, the company is dissolved.
Before applying, directors must notify every interested party - creditors, employees, HMRC - and deal with the company's assets, because anything still owned at dissolution passes to the Crown as bona vacantia.
When strike off is right
Dormant companies, companies that never traded, and solvent companies with small remaining balances - below roughly £25,000, where distributions still receive capital treatment and an MVL adds little; our MVL vs strike off comparison covers the threshold.
When it's wrong
Any company with debts it can't pay - creditors can object, dissolved companies can be restored, and the Insolvency Service investigates directors who use dissolution to dodge debts; the responsible route for an insolvent company is a CVL.
And any solvent company with meaningful funds, where strike off's income tax treatment above £25,000 makes it the expensive-looking-cheap option.
If you're unsure which side of those lines your company sits, one call settles it.
Call our licensed insolvency practitioners in Manchester on 0333 023 5090 - free, confidential, and directly with an ICAEW-licensed IP.
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This page is intended for general information purposes only and does not constitute financial, legal, or professional advice. Always take advice from a licensed insolvency practitioner about your specific position.