Corporate Law

Strike Offs & Dissolutions

There are two such courses available through the duration that can see a company removed from the register at Companies House, namely striking off and dissolution.

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Striking-off: this refers to any situation where the company is regarded as inoperative/inactive. It may be due to failure to file annual accounts or the confirmation statement and failure to respond to inquiries from the house.

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This is effected through notice to the registered office address of the company, and unless responded to within the relevant period, the company can be struck off the register. Though relatively simple and inexpensive, striking off does not release the company from any debt or liability outstanding.

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​Winding up is the more formal winding-down process that can be either a voluntary or compulsory liquidation. The directors, shareholders, or by an order from the court could do this. A corporation would go through a voluntary liquidation where it sells assets to pay off debts owed and then distributes any money left over to the owners. In a compulsory liquidation, a liquidator appointed by the court oversees the dissolution, and after all affairs have been concluded, the liquidator applies to Companies House for the company's formal liquidation.

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​ Although both striking off and dissolution can have grave legal and financial implications, a business is supposed to take the help of an attorney or some other financial expert to decide between the two.