How do I close my company

How do I close my company

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I need to shut down my company. I am in dispute with a creditor which is not going to be resolved.

Can I just file my last return/accounts with HMRC and send form DS01 at companies house and wait?

Replies (10)

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By johngroganjga
07th Apr 2016 16:56

No you certainly can't!

Speak to the solicitor I hope you have acting for you in the dispute.  if you haven't got one perhaps that is why it looks like it is not going to be resolved.

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Replying to Paul Crowley:
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By WestBest
07th Apr 2016 17:25

My problem is I now do not have any money

johngroganjga wrote:

No you certainly can't!

Speak to the solicitor I hope you have acting for you in the dispute.  if you haven't got one perhaps that is why it looks like it is not going to be resolved.

My problem is I now do not have any money, so I just want to close the business and go and get a job elsewhere.

I owe a £5k, I know this may not seem like a lot of money, but when you don't have any it is.

I hear of builders (i'm not a builder) just closing down companies and walking away, so what do they do?

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Replying to mike01:
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By DSP Financial Management
07th Apr 2016 19:37

Appoint a liquidator, or negotiate a settlement for that

creditor.

WestBest wrote:

My problem is I now do not have any money, so I just want to close the business and go and get a job elsewhere.

I owe a £5k, I know this may not seem like a lot of money, but when you don't have any it is.

I hear of builders (i'm not a builder) just closing down companies and walking away, so what do they do?

They do what Portia says, and hope that the creditor does not read the London gazette!  (LOL)

Do you owe your accountant fees for looking after you? This has a ring about it.

You could make the company dormant whilst you find a job. It is unethical to dissolve the company without concluding the matter with this creditor, the form DS01 requires your signature, section 4 is implicit in your requirement to notify creditors, and you will need to borrow a tenner to file. . .

You could set about negotiating the position during the interim period, your company must be insolvent if there are no funds available, so closing down all further activity is at least your correct first step. Do you owe HMRC as well? You may not know? By the sound of things.

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Replying to mike01:
RLI
By lionofludesch
08th Apr 2016 13:08

Strike off

WestBest wrote:

johngroganjga wrote:

No you certainly can't!

Speak to the solicitor I hope you have acting for you in the dispute.  if you haven't got one perhaps that is why it looks like it is not going to be resolved.

My problem is I now do not have any money, so I just want to close the business and go and get a job elsewhere.

I owe a £5k, I know this may not seem like a lot of money, but when you don't have any it is.

I hear of builders (i'm not a builder) just closing down companies and walking away, so what do they do?

If you apply for strike off you need to declare that you have no creditors.

Unfortunately for you, that's not true.

You may, of course, appoint a liquidator to wind up the company as insolvent.  But it might well be cheaper to pay the creditor.  Liquidators are well known for sucking all the money from a company and then saying there's no money left.

Have you told the creditor that the company has no funds ?  Armed with that information, he may decide not to pursue his claim. Particularly as you dispute it.

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Replying to BJNATHAN:
Image is of a pin up style woman in a red dress with some of her skirt caught in the filing cabinet. She looks surprised.
By Monsoon
08th Apr 2016 13:51

DS01

lionofludesch wrote:

If you apply for strike off you need to declare that you have no creditors.

 

Last I checked no you don't. You have to send a copy of Form DS01 to all creditors and advise them of the situation. You certainly can apply to close it while you owe money - but as above watch out if your directors loan account is overdrawn, and obviously we don't know who the other debtors and creditors of the company are.

But in a nutshell, that's what limited liability is for, if you genuinely can't pay and can't trade out of it.

I would recommend speaking to an Insolvency Practitioner though, as you can give them the complete picture and they can advise accordingly.

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Portia profile image
By Portia Nina Levin
07th Apr 2016 17:07

Just do nothing. See what happens. It might all turn out well. It might not.

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By Democratus
07th Apr 2016 17:21

All disputes get resolved if acting properly...

... you may not like the expected resolution I am guessing

You can't close down the company with a creditor due, albeit disputed. You need specific advice either from a solicitor or insolvency practitioner.

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By Democratus
07th Apr 2016 17:31

i refer you to my earlier response & John's

You need specific advice either from a solicitor or insolvency practitioner. Unfortunately this site cannot give you the specific advice you clearly need.

 

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By bernard michael
08th Apr 2016 11:09

If you do nothing the creditor may sue the company, obtain judgement and when he finds the company hasn't got any money present a winding up petition. Company gets liquidated at no cost to you 

This debt isn't personal so why are you worried.

I assume you've told the creditor of the cash situation so he'll be silly not to do a deal

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Melchett
By thestudyman
08th Apr 2016 11:30

If you have taken money out as Director loans, they should be paid back to the company.

Alternatively, sell any assets/stock to raise funds. 

If either cannot be achieved, then there is nothing to stop you trying to get the company dissolved. You have to tell the creditor and they could object and then the process halts. 

You also have to wait 3 months since you last traded.

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