Making company dormant
I've been director of a company for the past six years with my son as co-director; and both of us and my wife are shareholders. It is our intention to disincorporate the business with myself becoming sole trader. I've looked at the info on Companies House website and have form DS01 at the ready; the company hasn't conducted any business since the end of November 2012 and the end of year falls at the end of February 2013 which meets the requirement of not having traded for three months. However, the problem is how to distribute the cash and assets of the business - clearly not one penny of worth wants to remain on the balance sheet following disincorporation as this would pass to the Crown (bona vacantia).
So I wondered if it would be allowable/practical to make the company dormant in the short term - maybe for one year - while the assets are distributed prior to disincorporation. Can somebody tell me what is involved in making a company dormant? Can it still have assets on the balance sheet and can they be distributed during this dormant period without disqualifying it from being classed as domant? I am about to conduct my first bit of business as a sole trader (whoopee!) so I need to sort something out quickly.
Thanks in advance for any help.