Companies House explained · Updated September 2026

How to close a limited company

The short answer

If your company is solvent and hasn't traded for 3 months, apply to Companies House to strike it off with form DS01. It costs £18 and usually takes about three months. If the company can't pay its debts, it has to be liquidated instead.

Options

Ways to close a limited company

Route	When to use it	Who does it
Voluntary strike-off (DS01)	Solvent, stopped trading, little or nothing left in the company	The directors, £18 at Companies House
Members' voluntary liquidation	Solvent, with significant money or assets to distribute	A licensed insolvency practitioner
Creditors' voluntary liquidation	The company can't pay its debts	A licensed insolvency practitioner
Compulsory liquidation	A creditor petitions the court to wind the company up	The court and Official Receiver

Official guidance: strike off your company and liquidate your company on GOV.UK.

DS01 checklist

How to close a company with DS01, step by step

1Stop trading. The company must not have traded, sold stock or changed its name in the last 3 months.
2Settle debts and taxes. Pay suppliers, HMRC and any loans, or agree how they'll be dealt with. File final accounts and a final Corporation Tax return.
3Close payroll and VAT. Run a final payroll and close the PAYE scheme, and deregister for VAT and CIS if registered.
4Deal with the assets. Sell or transfer anything the company owns, distribute remaining money to shareholders, then close the bank account and transfer domain names.
5Apply with DS01. A majority of directors sign form DS01 and send it to Companies House with the £18 fee (not paid from the company's own account).
6Tell interested parties within 7 days. Send a copy to shareholders, creditors, employees, pension trustees and any directors who didn't sign.
7Wait for dissolution. A notice goes in The Gazette. If nobody objects within two months, a second notice confirms the company is dissolved.

Conditions

When you can't use DS01

You can only strike off a company that:

hasn't traded or sold stock in the last 3 months
hasn't changed its name in the last 3 months
isn't threatened with liquidation
has no agreement with creditors, such as a Company Voluntary Arrangement (CVA)

If any of these apply, you'll need to liquidate the company instead. Making a dishonest application is an offence.

Afterwards

What happens after you apply

Companies House publishes a first notice in The Gazette and the company status changes to “active – proposal to strike off”. After two months without objections, a second notice confirms it is dissolved. You lose access to the company bank account, and anything left in the company passes to the Crown. If you need it back, see how to restore a dissolved company.

Closing to go back to being a sole trader? Compare take-home pay with the sole trader vs limited company calculator. Our Trade Tracker shows how many trade companies close each month.

Closing a limited company FAQs

If the company is solvent and has stopped trading, the cheapest way is to apply to Companies House to strike it off using form DS01 (£18). If it can't pay its debts, it has to go through a creditors' voluntary liquidation instead. Solvent companies with significant money left may be better closed through a members' voluntary liquidation.

DS01 is the Companies House application to strike off and dissolve a company voluntarily. It must be signed by a majority of the directors. Companies House publishes a notice in The Gazette and, if nobody objects, the company is dissolved about two months later.

Not if it is threatened with liquidation or has an arrangement with creditors such as a CVA. Creditors must be told about the application and can object. If the company can't pay its debts, it needs a creditors' voluntary liquidation run by an insolvency practitioner.

A DS01 strike-off costs £18 at Companies House, plus any accountancy fees for final accounts and tax returns. Liquidation costs more because it's run by a licensed insolvency practitioner.

Deal with it before applying: pay creditors and taxes, then distribute what's left to shareholders. Anything still in the company when it is dissolved, including the bank balance and any later HMRC refunds, passes to the Crown. Get tax advice on how final distributions will be taxed.

Usually around three months: Companies House checks the form, publishes a first notice in The Gazette, and dissolves the company once the two-month objection period passes with no objections.

Yes, with form DS02. You must withdraw it if the company starts trading again, changes its name or becomes subject to insolvency proceedings before it is dissolved.

General information based on Companies House and GOV.UK guidance (September 2026), not legal or tax advice. Take advice from an accountant before distributing company money, and from an insolvency practitioner if the company has debts it can't pay.

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Route

When to use it

Who does it

Voluntary strike-off (DS01)

Solvent, stopped trading, little or nothing left in the company

The directors, £18 at Companies House

Members' voluntary liquidation

Solvent, with significant money or assets to distribute

A licensed insolvency practitioner

Creditors' voluntary liquidation

The company can't pay its debts

A licensed insolvency practitioner

Compulsory liquidation

A creditor petitions the court to wind the company up

The court and Official Receiver

Closing a limited company FAQs

A DS01 strike-off costs £18 at Companies House, plus any accountancy fees for final accounts and tax returns. Liquidation costs more because it's run by a licensed insolvency practitioner.

Usually around three months: Companies House checks the form, publishes a first notice in The Gazette, and dissolves the company once the two-month objection period passes with no objections.

Yes, with form DS02. You must withdraw it if the company starts trading again, changes its name or becomes subject to insolvency proceedings before it is dissolved.

How to close a limited company

Ways to close a limited company

How to close a company with DS01, step by step

When you can't use DS01

What happens after you apply

Closing a limited company FAQs

How do I close a limited company?

What is a DS01 form?

Can I use DS01 if my company has debts?

How much does it cost to close a limited company?

What happens to money left in the company?

How long does it take to close a company with DS01?

Can I withdraw a DS01 application?

How to close a limited company

Ways to close a limited company

How to close a company with DS01, step by step

When you can't use DS01

What happens after you apply

Closing a limited company FAQs

How do I close a limited company?

What is a DS01 form?

Can I use DS01 if my company has debts?

How much does it cost to close a limited company?

What happens to money left in the company?

How long does it take to close a company with DS01?

Can I withdraw a DS01 application?