There are several ways to close a UK limited company, and the right method depends on whether it has assets, debts and whether it is still trading.
Option 1: Voluntary Strike Off (DS01)
Simplest and cheapest. Suitable if the company has no debts, no assets and has not traded in the last 3 months:
- File form DS01 with Companies House (£8 online)
- Notify creditors, employees and shareholders
- Company is advertised in the Gazette for 2 months
- If no objections, the company is dissolved
File all outstanding accounts and confirmation statements first.
Option 2: Members Voluntary Liquidation (MVL)
If assets exceed £25,000, an MVL is more tax-efficient. Distributions are treated as capital gains (10-20%) rather than dividends (up to 39.35%). You may qualify for Business Asset Disposal Relief (10% on the first £1m). Requires an insolvency practitioner (£2,000-5,000+). Use CalcPad to compare tax savings vs costs.
Option 3: Make It Dormant
Not sure about permanent closure? Make it dormant. You still file dormant accounts and confirmation statements each year, but the company name stays reserved for future use.
Checklist Before Closing
- File all outstanding accounts and tax returns
- Pay Corporation Tax owed
- Close PAYE scheme (see our PAYE guide)
- Deregister for VAT if applicable
- Distribute remaining assets to shareholders
- Close business bank account
- Keep records for 6 years after dissolution
Compulsory Strike Off
Companies House can strike off companies that fail to file. Check notices on BizLookup and file overdue documents to prevent it.
Restoring a Dissolved Company
Possible within 6 years via administrative restoration or court order. May be needed to pursue claims, access assets or resolve tax matters.