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
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.