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How to close a business?

  • Thread starter Thread starter geester
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geester

We several businesses, but 1 has not made any money in the past 2-3 months, we haven't even taken a wage! So we are looking to close it, what is the best way to do this? That does not cost us too much!

This allows us to concentrate on other projects.
 
Ltd company, no staff apart from me and my wife, zero stock, rented premises - 1 months notice.
 
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If the company is no longer needed just send in form DS01 Strike Off Application to Companies House. It has to be non trading for 3 months before you can send in form.

In the meantime do not file any Accounts or Returns with HMRC- write to them and advise company ceased trading and is to be dissolved.
 
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Ian J said:
Why not? My company doesn't have any stock
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I was not thinking of a service company.

Point taken.

I just presumed that after the OP's comments regarding no profit after 2/3 months was perhaps not giving sufficient time for a business to work and related this to not having any stock.
 
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MY OFFICE IN CHINA said:
I was not thinking of a service company.

Point taken.

I just presumed that after the OP's comments regarding no profit after 2/3 months was perhaps not giving sufficient time for a business to work and related this to not having any stock.
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Even companies that supply products don't always have stock if they rely on dropshipping or only manufacture against firm customer order
 
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Ian J said:
Even companies that supply products don't always have stock if they rely on dropshipping or only manufacture against firm customer order
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OK.

2 - 0 to you!

I just don't think that 2-3 months is sufficient time to evaluate whether a business has made money or not, irrespective of stock, no stock or relying on dropshipping.

Your point(s) are taken!
 
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The company has been trading for 2 years, we have no stock as everything is made to order. Business has been dead for the past few months. First year very good, second year dreadful, as I said not paid a wage in the past 3 months.

I think over 2 years is enough time to see if a business is viable...usually this is enough for anyone? We have other businesses that are extremely profitable, so we are focusing on them. I just wanted to understand how to close the business down. The company has to file accounts at Companies House at the end of October, if there is anything to pay there is no money in the business account. :(

MY OFFICE IN CHINA said:
OK.

2 - 0 to you!

I just don't think that 2-3 months is sufficient time to evaluate whether a business has made money or not, irrespective of stock, no stock or relying on dropshipping.

Your point(s) are taken!
Click to expand...
 
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You can get the company dissolved by submitting form DS01 with a payment of £10 but you have to wait three months from the date that you last traded before you can file it. Once you have filed the form Companies House will not care if you file the accounts or not. HMRC might object to the striking off if you don't file the accounts and corporation tax with them, but that's not due until 12 months after the accounting date.

You would need to send a copy of the form to all known creditors as well as to Companies House
 
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geester said:
The company has been trading for 2 years, we have no stock as everything is made to order. Business has been dead for the past few months. First year very good, second year dreadful, as I said not paid a wage in the past 3 months.

I think over 2 years is enough time to see if a business is viable.../QUOTE]

Yes, totally agree!

I made presumptions.

3 - 0 down !
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geester said:
The company has been trading for 2 years, we have no stock as everything is made to order. Business has been dead for the past few months. First year very good, second year dreadful, as I said not paid a wage in the past 3 months.

I think over 2 years is enough time to see if a business is viable...usually this is enough for anyone? We have other businesses that are extremely profitable, so we are focusing on them. I just wanted to understand how to close the business down. The company has to file accounts at Companies House at the end of October, if there is anything to pay there is no money in the business account. :(
Click to expand...

If your company was profitable in the first year, it'll likely have a corporation tax liability to pay. If it can't pay that, question is whether that's because:
1) subsequent unexpected losses wiped out any historic profit...in which case carrying those back might legitimately eliminate any CT,
2) you took all the cash out when it was profitable, not leaving cash aside for the CT. In which case you should submit the CT return, and put personal cash back into the company to pay any tax due. Then you can close it.
 
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