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What is a Compulsory Strike Off

A compulsory strike off means that your company has been removed from the official register at Companies House and formally closed.u00a0<br>Itu2019s sometimes referred to as dissolution and tends to be issued on the grounds that the company in question is no longer trading or has failed to conform to legal requirements

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What is a Compulsory Strike Off

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  1. What is a Compulsory Strike Off?

  2. What is a Compulsory Strike Off? • A compulsory strike off means that your company has been removed from the official register at Companies House and formally closed.  • It’s sometimes referred to as dissolution and tends to be issued on the grounds that the company in question is no longer trading or has failed to conform to legal requirements. • A strike off can be voluntary, put forward by Directors who have no other use for the company and want it to close, or compulsory, put forward by a third party petitioning for your company’s closure.

  3. Why would a company be struck off? A company would be forcibly struck off by Companies House due to: • Failure to submit timely accounts • Failure to submit an annual confirmation statement • Failure to conform to legal requirements • The company having no appointed directors • The company having ceased trading

  4. Companies House strike off process • In all cases of compulsory strike off, the company in question will be sent at least two formal letters warning them of imminent strike off and detailing the issues they have. • Companies House does have to have reasonable grounds to believe that the company isn’t trading and should be struck off, before taking action. • If Companies House fails to get a response from the company after sending two letters, they will publish their first strike off notice in the Gazette. This notice declares that the company has two months before it is struck off and ceases to exist as an official company.

  5. What are my options following a request to strike off • The options you have following a request to strike off are based on 2 main factors – whether you want your company to close or you wish to remain trading.  If your company is accepting the strike off: • In certain cases, the company may be coming to a natural end and directors are happy for the company to be struck off. In this case, so long as you: • Have no outstanding debts;  • Have realised all of your assets; • Have ceased trading

  6. If your company is disputing the strike off: If you believe that the strike off is unjust or details are incorrect, you will need to send off a suspension application directly to Companies House. You may have to rectify any issues, such as: • Filing missing accounts • Sending off relevant statements • Proving that you are currently trading.

  7. What are the consequences of a compulsory strike off? If you don’t respond to a compulsory strike off, Companies House can strike your business off the register even if you’re still actively trading. This would mean that: • Your company ceases to legally exist • You will no longer be able to dispute the strike off • You will be denied access to financial support • Directors may face investigation into potential misconduct that led to the strike off

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