Making the decision to close your limited company can feel like a stressful task. To help you overcome any worries, it is wise to educate yourself on the actions you need to take to close your company successfully. Fortunately, it can be made possible with just a few simple steps.
This helpful guide will help you close your limited company using just four simple steps. It will include information about DS01 forms, selling business assets, and much more.
End Operations And Inform Employees
To close your business, you will need to create a task list to help you end operations. You may have hundreds of orders that are outstanding. Make sure you fulfil these orders, and then you can focus on sorting out other important areas of the business.
You will also need to inform your employees that the business is closing. This can be a difficult time for a business leader. Seek advice through online resources to find out when the best time to do this is. Your employees deserve an explanation, so it is best to be open and honest with them about the situation.
Sell All Business Assets
Eventually, you will need to start selling your business assets. To try and make as much profit as possible, you should start selling your stock for a small discount. Eventually, you can increase these discounts to help you empty your product catalogue. The internet is also an excellent resource for you to use. You can use selling sites to get rid of any inventory you no longer require.
The profit you make from selling your business assets can be used to pay off any company debts and taxes. Not all businesses manage to sell all their assets on time. If this is the case for your company, you can make a deal with a business liquidation company. They can help you get rid of inventory such as large pieces of tech.
Get Struck Off The Companies House Register
Once you have made the decision to close your limited company, you will eventually need to strike your company off the Companies House register. This is a critical part of the dissolution process. Once your company is struck off, it will no longer legally exist.
To voluntarily strike off your company, you will need to acquire some information about DS01 forms. If you are wondering – What is a DS01 Form? Take a look at this article from Future Strategy. They discuss the document in its entirety, outlining what it is and the following information you will need to include.
Close All Accounts And Pay Taxes
When closing your business, expect to pay off your taxes. In the UK, companies are required to pay a Corporation Tax, which you can learn more about online. Essentially, your business pays its tax on all profits from the UK and abroad. Failure to pay your taxes can result in a hefty penalty.
As well as paying your taxes, you should also close all of your business accounts. This is a requirement before you fill out your DS01 form. If you need help with the financial side of your business, it is advised that you consult with your accountant to ensure that you have completed everything correctly.