Closing a Ltd company
Closing a Ltd company
Author
Discussion

flatsix3.6

Original Poster:

756 posts

211 months

Wednesday 17th January 2018
quotequote all
As anyone done this and was it a painfull experiance or pretty straight forward.

Can companies house stop the closure ?.

anonymous-user

84 months

Wednesday 17th January 2018
quotequote all
flatsix3.6 said:
As anyone done this and was it a painfull experiance or pretty straight forward.

Can companies house stop the closure ?.
If the company is up to date and can complete its filings and doesn't owe anyone any money it's a very straightforward procedure.




RM

686 posts

127 months

Wednesday 17th January 2018
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Companies house won't stop the closure, though any creditors can object to it being struck off the register. It needs to have not traded for 3 months, IIRC, and you need to write to all creditors to state that it is going to be struck off, so that they may object. If they do object, then Companies House will expect them to do something about it, if they don't, then reapply to have it struck off in another 3 months. The plan to strike off will be published, and if no objections received then it will be struck off in 3 months.

If it hasn't traded at all, or if not for 3 months and doesn't owe anyone any money (including HMRC), then just fill in Companies House form DS01 and send it off. 3 months later, gone!

ecs

1,452 posts

200 months

Wednesday 17th January 2018
quotequote all
Make sure you do something with the businesses cash and other assets too, or 'the Crown' will get 'em!

Edited by ecs on Thursday 18th January 11:39

Eric Mc

125,770 posts

295 months

Wednesday 17th January 2018
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Yes - don't allow the company to be closed down if there is still money in the bank.

And, if the company is due any refunds of (say) Corporation Tax, you might need to leave it in existence long enough for that money to be repaid.

sgtBerbatov

2,597 posts

111 months

Wednesday 17th January 2018
quotequote all
I closed mine after I filed the returns late, ended up with a £300 fine from Companies House. I decided to close it for £10 instead of paying the fine for a dormant company that I wasn't really going to use.

It all went ahead smoothly, even after the threatening letters from their bayliffs, and I haven't heard anything since. This was done in October last year.

TartanPaint

3,367 posts

169 months

Wednesday 17th January 2018
quotequote all
Came here to say the same thing. Get your money out first!

I lost thousands because I didn't know I had to close the bank accounts before closing the company.

I went to the bank to get my money. While wrapping things up, I'd paid all suppliers and HMRC and even the accountant, and so every penny left in there was mine to move to my personal account. It was gone. The bank couldn't let me near the account. Automatically closed by the act of closing the company down, and the contents go to the crown. I was absolutely devastated. Bloody accountant who did all the closing down paperwork for me didn't think it important to warn me. There's no way to get it back.

bigandclever

14,406 posts

268 months

Wednesday 17th January 2018
quotequote all
TartanPaint said:
There's no way to get it back.
There certainly used to be, I did it. You have to restore the company, and apply to the Treasury to get the bono vacantia money back.

Restoration fees are a few hundred quid; court fees, treasury solicitor fees and legal fees are a few hundred quid; Companies House want a couple of hundred; your accountant would probably charge a few hundred quid. It all adds up! But it depends on how much is 'lost'

Eric Mc

125,770 posts

295 months

Wednesday 17th January 2018
quotequote all
Yes - you can restore a struck off company.

Flooble

5,756 posts

130 months

Wednesday 17th January 2018
quotequote all
TartanPaint said:
Came here to say the same thing. Get your money out first!

I lost thousands because I didn't know I had to close the bank accounts before closing the company.

I went to the bank to get my money. While wrapping things up, I'd paid all suppliers and HMRC and even the accountant, and so every penny left in there was mine to move to my personal account. It was gone. The bank couldn't let me near the account. Automatically closed by the act of closing the company down, and the contents go to the crown. I was absolutely devastated. Bloody accountant who did all the closing down paperwork for me didn't think it important to warn me. There's no way to get it back.
Yes there is - https://www.gov.uk/restore-dissolved-company

Then Bona Vacantia. https://www.gov.uk/guidance/apply-for-a-repayment-...

I know people decree the government but ...


TartanPaint

3,367 posts

169 months

Thursday 18th January 2018
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I went down that route for recovering the lost funds, and I'm glad it worked for others, but I couldn't get past the first hurdle, which was "We only do open cases in exceptional circumstances. A simple mistake on your part does not count as exceptional."

Also, I couldn't get my accountant to help me, probably because things had soured when he ballsed up (in my view, he disagreed with his scope of responsibility). He recommended hiring a specialist to help recover the funds, but I couldn't afford one (having lost my
money), and the few I spoke to laughed at my "I promise to pay you if we get the money back" idea.

It was a very sh*tty time. Anyway, learn from my mistakes.

EDIT: Actually, I could afford to do this process now. I'm off to see if there's any time limitations on it. Thanks for the nudge!

flatsix3.6

Original Poster:

756 posts

211 months

Thursday 18th January 2018
quotequote all
sgtBerbatov said:
I closed mine after I filed the returns late, ended up with a £300 fine from Companies House. I decided to close it for £10 instead of paying the fine for a dormant company that I wasn't really going to use.

It all went ahead smoothly, even after the threatening letters from their bayliffs, and I haven't heard anything since. This was done in October last year.
Why did they allow you to close it if they are now using debt collector, do they have to let a dormant company close first before they chase the debt.

Eric Mc

125,770 posts

295 months

Thursday 18th January 2018
quotequote all
Incompetence on behalf of a government agency.

It's not unknown.

bigandclever

14,406 posts

268 months

Thursday 18th January 2018
quotequote all
TartanPaint said:
EDIT: Actually, I could afford to do this process now. I'm off to see if there's any time limitations on it. Thanks for the nudge!
I think it's 6 years from when the company is struck off the register.

ETA Just googled, the 6 year limit is on administrative restoration to the register, via Companies House; the extension of which is that, if you can't restore to the register, then you can't apply for the bono vacatia bit to be changed. So that's your first point of call. As an aside, it's possible to get a Court Order for restoration, but obviously that's the last resort of the process.

Edited by bigandclever on Thursday 18th January 10:32

sgtBerbatov

2,597 posts

111 months

Thursday 18th January 2018
quotequote all
flatsix3.6 said:
sgtBerbatov said:
I closed mine after I filed the returns late, ended up with a £300 fine from Companies House. I decided to close it for £10 instead of paying the fine for a dormant company that I wasn't really going to use.

It all went ahead smoothly, even after the threatening letters from their bayliffs, and I haven't heard anything since. This was done in October last year.
Why did they allow you to close it if they are now using debt collector, do they have to let a dormant company close first before they chase the debt.
In all honesty, I don't know. I asked the woman at Companies House about it and she was adamant that as soon as they receive the notice to shut the company down, as long as I've notified HMRC and any creditors (which there were none) it would be closed. However, if in the future I want to resurrect the company, I'll have to pay the fine that's owed to them.

That's my understanding anyway.