Much like registering a business with the HMRC, dissolution involves telling the relevant authorities about your change in circumstances. You will be required to strike off your LLC, limited liability partnership (LLP), community interest company (CIC) or charitable incorporated organisation (CIO) from the Companies House register. Once a name is removed from the register, the company does not legally exist anymore.
However, before you file the relevant documentation you must consult relevant parties depending on the legal structure of your business. For example, LLCs need to approve a dissolution with their members. The exact voting procedures will be outlined in your operating agreement.
If everyone agrees, you should tell creditors about the closure of the business and allow enough time for them to make final claims.
There are a few other conditions companies must meet before dissolving in the UK:
- They cannot have continued trading or traded stocks within three months before dissolution.
- They cannot have legally changed their name within three months before terminating the business.
- They have not already initiated administration proceedings or put a company voluntary agreement in place.
Companies that do not meet these requirements must opt for voluntary liquidation instead.