How to close down your limited company: A step-by-step guide 

How to close down your limited company: A step-by-step guide 

Whether you're wrapping up a chapter in your contracting career, taking a break from trading, or stepping away from business altogether, there are several ways to close a solvent limited company - and it’s important to get it right.

This guide walks you through the key options available, what each process involves, and how to decide which route suits your situation best.

A quick note on IR35

If you’re currently working inside IR35 but may return to outside-IR35 contracts in future, it’s not always necessary to close your company. Many contractors choose to keep their limited company dormant, leaving the door open to resume trading later. We’ll explain how to do that, too.

The information below is focused on solvent companies - that is, businesses that can pay their bills. If your company is insolvent, there are different rules and steps you’ll need to follow. 

For that, we recommend checking the official guidance on the government website.

1. Voluntary dissolution (striking off)

Closing your limited company through voluntary dissolution, commonly referred to as ‘striking off’, is a straightforward and cost-effective method suitable for solvent companies that have ceased trading.

What is voluntary dissolution?

Voluntary dissolution involves formally requesting the removal of your company from the Companies House register. This process is initiated by submitting a DS01 form, signalling your intent to close the company.

Considerations before applying

• Your company must not have traded or sold off any stock in the last three months.

• You must not have changed your company’s name in the last three months.

• Your company must not be threatened with liquidation or any insolvency proceedings.

• You must not have any ongoing agreements with creditors [1]

[1] https://www.gov.uk/strike-off-your-company-from-companies-register

The application process

•  Complete the DS01 form: You can apply online through Companies House, which costs £33. Alternatively, you can submit a paper application for £44.

• Get director approval: If your company has multiple directors, a majority must sign the DS01 form.

• Notify interested parties: Within seven days of submitting the DS01 form, you must send a copy to all interested parties, including creditors, employees and shareholders.  

• Wait for notice to be published. Companies House will publish a notice of your application in The Gazette, allowing interested parties to object.

• Final dissolution. If no objections are raised within two months, a second notice will be published in The Gazette, and your company will be officially dissolved. 

Be sure to keep records of the dissolution process including communications with interested parties and confirmations from Companies House, and don’t forget to complete those final admin tasks like notifying your insurer, filing final accounts and closing your business bank account. 

You should keep other business documents, such as bank statements, invoices and receipts, for seven years after the company is struck off.