Closing a limited company is not simply a matter of stopping trading. If you no longer need your UK company, you may be able to dissolve a company by applying to have it struck off the Companies House register.

For eligible companies, voluntary strike-off can be a relatively straightforward way to close a business. The process involves preparing the company properly, submitting a DS01 application, notifying relevant parties and waiting for Companies House to complete the dissolution process.

In this guide, we explain how to dissolve a company, who can use voluntary strike-off, how to strike off a company online, what it costs and what happens after the application.

What Does It Mean to Dissolve a Company?

To dissolve a company means to remove it from the Companies House register so that it no longer legally exists.

For a limited company that has stopped trading and meets the relevant conditions, voluntary strike-off is one way of achieving this. GOV.UK describes striking off as another way of closing a company, and the terms “strike off” and “dissolve” are therefore commonly used together.

Once the company has been dissolved, it cannot continue operating as a normal company. Its bank account will be frozen, and any remaining money or assets may pass to the Crown.

This makes it important to deal with the company's finances, assets, tax affairs and outstanding obligations before submitting the application.

When Can You Dissolve a Company?

Not every company can use voluntary strike-off.

According to Companies House guidance, a company can generally apply for voluntary strike-off if it:

• Has not traded or sold stock during the previous 3 months
• Has not changed its company name during the previous 3 months
• Is not threatened with liquidation
• Does not have an agreement with creditors, such as a Company Voluntary Arrangement (CVA)

If your company is insolvent or cannot pay its debts when they are due, voluntary strike-off may not be the appropriate route. Formal insolvency procedures may need to be considered instead.

It is also important not to use strike-off simply as a way of avoiding debts or obligations.

How to Prepare Before You Strike Off a Company Online

Before you strike off a company online, you need to properly close down the business.

This preparation can help prevent delays, objections or complications during the application.

1. Stop Trading

The company must meet the eligibility requirements for voluntary strike-off. If it has continued trading within the relevant three-month period, it may not qualify.

Make sure all business activity has genuinely stopped before applying.

2. Deal With Company Assets

You should deal with company assets before dissolution.

This can include:

• Money in business bank accounts
• Equipment
• Stock
• Vehicles
• Refunds due from HMRC
• Intellectual property
• Website domains
• Other business property

Remaining assets can pass to the Crown after dissolution, so directors should not simply leave valuable assets inside the company.

3. Deal With Debts and Creditors

Outstanding debts should be dealt with before applying.

This could include amounts owed to:

• Suppliers
• Banks
• Employees
• HMRC
• Landlords
• Contractors
• Other creditors

Voluntary strike-off is not intended to replace formal insolvency procedures where a company cannot pay its debts.

4. Deal With HMRC

Your company should deal with its tax responsibilities before dissolution.

Depending on the company's circumstances, this may include completing final accounts and tax returns, settling Corporation Tax and dealing with VAT or PAYE obligations.

If the company has employees, you also need to follow the relevant procedures for ending employment and stopping as an employer.

5. Close the Business Bank Account

Before dissolution, directors should deal with the company bank account and transfer or withdraw funds appropriately.

Do not assume that money left in the account will automatically return to the directors. Once the company is dissolved, the bank account is frozen and remaining money can pass to the Crown.

How to Strike Off a Company Online

If your company meets the requirements, you can use the Companies House online service to apply for voluntary strike-off.

The application is made using the DS01 process.

The online route is generally quicker and currently costs £13. The paper application costs £18. These fees were updated from 1 February 2026.

Step 1: Check Your Company Is Eligible

Before applying, check that your company meets the voluntary strike-off requirements.

In particular, make sure it has not:

• Traded during the last 3 months
• Sold stock during the last 3 months
• Changed its name during the last 3 months
• Entered into a creditor arrangement
• Been threatened with liquidation

If any of these circumstances apply, you may need to take a different route.

Step 2: Prepare Your Final Company Affairs

Deal with outstanding financial and administrative matters.

This may include:

• Preparing final accounts
• Dealing with Corporation Tax
• Cancelling VAT registration if applicable
• Closing PAYE schemes
• Paying outstanding creditors
• Collecting money owed to the company
• Dealing with business assets

Step 3: Submit the Strike-Off Application

The directors then submit the application to Companies House.

A majority of the company's directors must authenticate the application. For example, if a company has two directors, both must apply; if it has three directors, at least two must apply.

Step 4: Notify Relevant People

Submitting the application is not the end of your responsibilities.

Within 7 days of applying, a copy of the application must be sent to relevant people, including shareholders, creditors, employees, certain pension representatives and directors who did not sign the application.

Failing to follow these notification requirements can lead to penalties.

Step 5: Wait for the Gazette Notice

Companies House will review the application.

If there is no reason to reject or delay it, a notice of the proposed strike-off is published in the relevant Gazette.

This gives interested parties an opportunity to object to the company's dissolution.

Step 6: The Company Is Dissolved

If there is no successful objection, Companies House will publish a second Gazette notice confirming that the company has been struck off.

The company is then dissolved and no longer legally exists.

How Much Does It Cost to Dissolve a Company?

The Companies House voluntary strike-off fee is currently:

The online fee was reduced to £13 from 1 February 2026.

However, the £13 Companies House fee is not necessarily the total cost of closing a company.

You may also have costs associated with:

• Preparing final accounts
• Tax advice
• Accounting services
• Settling outstanding liabilities
• Dealing with assets
• Professional assistance

The actual cost therefore depends on the company's circumstances.

How Long Does It Take to Dissolve a Company?

There is no instant company dissolution process.

After the application is accepted, Companies House publishes a notice in the Gazette. If there is no valid objection, the company will generally be struck off not less than two months after the Gazette notice is published.

The exact timeframe can vary if Companies House needs further information or someone objects to the application.

For this reason, directors should plan the closure rather than assuming the company will disappear immediately after submitting the DS01 application.

What Happens After a Company Is Dissolved?

Once the company is dissolved, it no longer legally exists.

There are several important consequences.

The Company Bank Account Is Frozen

The company's bank account will be frozen from the date of dissolution. Any remaining balance can pass to the Crown.

Remaining Assets Can Pass to the Crown

Assets that still belong to the company when it is dissolved can become Crown property.

This is why directors should identify and deal with company assets before submitting the strike-off application.

The Company Cannot Continue Trading

A dissolved company cannot continue normal business activities.

If the company needs to operate again, restoration to the Companies House register may be necessary in certain circumstances.

Can Someone Object to a Company Being Struck Off?

Yes.

Interested parties can object to a proposed strike-off. This could include creditors or others with a legitimate interest in the company.

For example, an objection may arise where the company still owes money or has not properly dealt with its obligations.

Companies House provides a process for objections, and the proposed dissolution may be delayed while the matter is considered.

From 1 December 2026, Companies House is due to require objections to limited-company strike-off to be submitted through its online service rather than by email.

Can You Cancel a Strike-Off Application?

Yes. A company can withdraw its strike-off application while it remains on the Companies House register.

You must withdraw the application if the company is no longer eligible—for example, if it starts trading again or becomes insolvent. Companies House also allows an application to be withdrawn if the directors simply change their minds.

Dissolve a Company vs Liquidation: What's the Difference?

Dissolution through voluntary strike-off is generally designed for eligible companies that have stopped trading and can properly close their affairs.

Liquidation is a formal process used in different circumstances, including certain insolvent companies.

The key point is that strike-off is not a substitute for insolvency proceedings. If a company cannot pay its debts, directors should consider the appropriate insolvency route rather than using dissolution simply to remove the company from the register.

Common Mistakes When Closing a Company

Directors can create unnecessary problems by treating strike-off as a simple online form.

Common mistakes include:

Leaving Money in the Company

Any money left in the company's bank account after dissolution can pass to the Crown.

Ignoring HMRC

Tax obligations do not simply disappear because the company is no longer trading.

Forgetting Creditors

Creditors must be properly considered and notified where required.

Applying Too Soon

If the company has traded or sold stock within the previous three months, it may not meet the voluntary strike-off conditions.

Failing to Notify Relevant Parties

The rules require copies of the application to be sent to relevant parties within the specified timeframe.

Assuming Dissolution Erases Debts

Dissolution does not provide a legitimate way to avoid debts. Creditors and other interested parties may have routes to challenge the dissolution or seek restoration of the company in appropriate circumstances.

Should You Use Professional Help to Dissolve a Company?

For a very simple dormant or inactive company, the online process may be manageable for the directors themselves.

However, professional accounting support can be useful if the company has:

• Outstanding tax
• VAT registration
• Employees
• Company assets
• Outstanding invoices
• Loans
• Shareholder balances
• Complicated accounts
• Previous trading activity

An accountant can help review the company's position, deal with outstanding accounting matters and make sure the closure process is approached correctly.

For businesses that want to dissolve a company without overlooking important financial or compliance obligations, professional advice can make the process easier to manage.

Final Checklist to Dissolve a Company

Before submitting your application, consider this checklist:

• Stop trading
• Confirm the company meets strike-off conditions
• Deal with company assets
• Settle or properly address outstanding debts
• Complete relevant tax obligations
• Deal with VAT and PAYE where applicable
• Prepare final accounts where required
• Close the company bank account appropriately
• Submit the DS01 application
• Pay the applicable Companies House fee
• Notify relevant parties within 7 days
• Monitor the Gazette notice
• Keep records of the closure

Final Thoughts

If you no longer need your limited company, learning how to dissolve a company can help you close the business in an organised way.

For an eligible company, voluntary strike-off provides a formal route to remove the company from the Companies House register. The strike off a company online process currently costs £13 and requires directors to meet specific conditions and complete their responsibilities before and after applying.

The most important step is not simply submitting the DS01 application. Directors should first deal with company assets, debts, tax responsibilities, employees and other outstanding matters. Doing this carefully can help prevent avoidable problems during the dissolution process.

FAQs

Can I dissolve my company online?
Yes. An eligible limited company can apply for voluntary strike-off using the Companies House online service. The current online application fee is £13.

How long must a company be inactive before strike-off?
For voluntary strike-off, the company must generally not have traded or sold stock during the previous three months and must meet the other eligibility conditions.

How much does it cost to strike off a company online?
The current Companies House online voluntary strike-off fee is £13. A paper application costs £18.

Can I dissolve a company with debts?
Voluntary strike-off is not an alternative to formal insolvency proceedings. If the company cannot pay its debts, appropriate insolvency advice should be considered.

What happens to money left in a dissolved company?
The company's bank account is frozen after dissolution, and remaining money and other assets can pass to the Crown.

What form is used to strike off a company?
The voluntary strike-off application is made using the DS01 process.

Can a dissolved company be restored?
In certain circumstances, a company can be restored to the Companies House register. The appropriate restoration route depends on the circumstances of the company.