Each year I-Support Business has a large number of businesses applying to use its registered office address service and our mail forwarding service. I-Support are keen to support these new start ups by offering competitively priced services, but we know from official statistics and our own experience that, between 20-30% fail in the first year and 50% won’t last 5 years.
There are numerous reasons why business fail or cease trading, (many of the most successful entrepreneurs have numerous attempts at starting companies), but you may voluntarily decide that closing your business is the best solution. If you have traded, we would always recommend discussing this with an accountant. If your company has been dormant since being registered the decision may not be as dificult.
You should therefore ensure that you close down your limited company correctly so that the company directors are not penalised.
A limited company can request to be closed / dissolved under Section 1003 of the Companies Act 2006, providing that it meets all of the following requirements:
- Not traded within the last 3 months
- Not changed the company name within the last 3 months
- Is not subject to any legal proceedings, current or proposed
- Has not made a disposal for value of property or rights
The application must be made by the majority of the Directors, the whole process can take 3 months from the publication by the registrar in the Gazette of a notice. This will allow anyone to show cause why your company should not be struck off.
To start the process it is relatively straight forward and costs £10, make sure you meet all the criteria above, and then complete the Striking Off application (DS01)
A copy must also be sent to interested parties within 1 week of the application e.g. HM Revenue & Customs, creditors, employees, members etc.
It is not uncommon for people to start again, using a different company name and using the experience and lessons to be successful.