Imagine deciding to close your limited business and beginning the strike-off process to remove it from the Companies House register, but when you contact Companies House, you discover that your request for striking-off action was denied?
This is a normal occurrence, and it usually occurs because you owe HMRC outstanding debts that need to be paid – usually, tax or PAYE – causing your strike off to be suspended.
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If you have outstanding creditors who may lose money if your company is struck off the register, they will have two months from the date your strike-off application is published to file an objection.
If Companies House decides to put a stop to your creditors’ or HMRC’s objections, your strike-off application will be put on hold, and your business will continue to operate.
Table of Content
- 1 What is a Company Strike Off?
- 2 Why Has Your Strike Off or Dissolution Been Suspended?
- 3 What are Your Options if Your Compulsory Strike-Off Action Has Been Suspended?
- 4 FAQ's
- 5 Summary
- 6 All UK Insolvency Practitioners
What is a Company Strike Off?
A strike-off occurs when a limited company is struck off from the companies register. A Voluntary Strike Off and a Compulsory Strike Off are the two sorts of strike-offs.
After going through the strike-off process, a firm ceases to exist and is unable to trade, make payments, or sell assets.
A Voluntary Company Strike off, often known as dissolution, is distinct from liquidation. It occurs on a completely voluntary basis and is a frequent method of winding up a limited corporation.
In order to qualify, the firm must have had company trading, changed its name, sold assets, or engaged in any other activity in the previous three months unless it was for the purpose of striking off.
If a corporation is under administration, is subject to a plan of arrangement or CVA, or has a receiver or manager appointed over its assets, it cannot be wound up.
Why Has Your Strike Off or Dissolution Been Suspended?
If your strike-off application has been suspended, it implies that a creditor has objected to the firm being dissolved, and your company will remain operating and on the Companies House record.
The corporation will not be dissolved until a new application is filed and no objections are received.
What are Your Options if Your Compulsory Strike-Off Action Has Been Suspended?
What you do next is determined by the circumstances surrounding why Companies House has not struck out your company:
Find Out Why
The first stage in determining who is opposed to the strike-off is straightforward. Companies House can inform you of the nature of the objection and who raised it if you contact them directly.
Only then will you be able to remove the precise hindrance to your strike-off being approved. For example, if HMRC has halted the strike-off, you must determine which taxes are owed and for what period, as there may be multiple years of owed taxes rather than just one.
If HMRC is the opposing party, they would most likely write to you stating their objection and proposed remedies. If another creditor disagrees with your strike-off, you must again determine the particular debt or reason in order to successfully deal with it.
You can resubmit the application and hope that this time your creditor will not object.
You might get lucky and your application will slip through the cracks, but you should be aware that your firm can be returned to the register even if it has been struck off if a creditor can provide a valid explanation.
However, now that you’ve caught your creditor’s attention and informed them of your plan to flee with your firm, they’ll be keeping a careful eye on your movements and ready to intervene with an objection.
Pay Off Company Debts
There’s no reason why your fresh application shouldn’t be allowed if your company owes nothing. Going this path, however, is contingent on the quantity of the debt and your ability to pay it off.
If your strike off application has been put on hold because of outstanding debt, you can pay it off and resubmit the application.
As a result, the objection is no longer valid, and nothing should prevent it from progressing. Obviously, the quantity of the debt and the company’s ability to pay it to determine this.
If the company owes different amounts to different company creditors, the problem becomes more intractable, and the validity of striking off as a method of ending the business is called into doubt.
In this circumstance, sending a payment to one creditor who has objected but none of the others would be considered a preferential payment, which could result in personal consequences for the directors.
Proceed with Formal Liquidation
A Formal Liquidation Procedure usually entails a creditor’s Voluntary Liquidation (CVL), in which licensed insolvency practitioners are appointed to oversee the company’s operations and close it down.
While there are benefits to striking off to interested parties, it is only appropriate for enterprises that meet certain conditions in order to close.
It doesn’t mean the company can’t close if you don’t meet these requirements. It simply indicates that you should explore another mode of business closure, such as liquidation.
A licensed insolvency practitioner supervises the closing of your firm and handles any assets as well as all outstanding obligations.
If your business has debts, liquidation rather than dissolution is likely to be the best option for getting it out of business.
What does it mean when compulsory strike-off action has been suspended?
If your company’s strike-off has been halted, it’s most likely due to ongoing obligations owing to creditors who stand to lose money if the corporation is liquidated.
Why would someone object to a company being struck off?
HMRC or another creditor may object to a company being struck off if they believe the company is attempting to dissolve without following proper procedures, mainly to avoid paying debts or avoiding legal action.
How long does a striking off suspension last?
The length of a strike-off suspension period is determined by the basis of the company’s refusal to be struck off. If it’s due to business debts, you may need to pay off all of your creditors before reapplying.
Company directors and other interested parties who are planning to go forth with their company closure or company dissolution must get free confidential advice from an Insolvency Practitioner.
When the interested party gets a free consultation about getting their company removed from the Companies House registry,
All UK Insolvency Practitioners
Here is a full list of Insolvency Practitioners in the UK who professional debt help and confidential advice:
- 1st Business Rescue Review
- Abbotts Insolvency Review
- Anchorage Chambers Insolvency Review
- Anderson Brookes Insolvency Review
- Angel Advance Insolvency Review
- Begbies Traynor Insolvency Review
- Bennett Jones Insolvency Review
- Best Bankruptcy Companies
- Best Company Administration Companies
- Best Company Dissolution Companies
- Best CVA Companies
- Best CVL Companies
- Best DAS Companies
- Best Full and Final Companies
- Best Insolvency Practitioners
- Best IVA Companies in Manchester
- Best IVA Companies UK
- Best MVL Companies
- Best Partnership Administration Companies
- Best Partnership Liquidation Companies
- Best Partnership Voluntary Arrangement Companies
- Best Pre Pack Administration Companies
- Best Sequestration Companies
- Best Trust Deed Companies
- Carrington George Associates Insolvency Review
- Chamberlain & Co Review
- Clarke Bell Licensed Insolvency Practitioner Review
- Creditfix Insolvency Review
- Debt Champion Insolvency Review
- Debt Consolidation Companies
- Debt Focus Insolvency Review
- Debt Relief Order Companies
- Debtfree4me Insolvency Review
- DMP Companies
- Financial Support Systems Insolvency Review
- Focus Insolvency Group Review
- Forbes Burton Licensed Insolvency Practitioners Review
- Forest King Insolvency Review
- Freeman Jones Insolvency Review
- Greenfield Recovery Review
- Gregory Pennington
- Griffin & King Licensed Insolvency Practitioners Review
- Hanover Insolvency Review
- Insolvency Administrator Rights
- Jarvis Insolvency Review
- Johnson Geddes Insolvency Review
- Keystone Recovery Licensed Insolvency Practitioners Review
- Leonard Curtis Insolvency Review
- McCambridge Duffy Insolvency Review
- MoneyPlus Insolvency Review
- NTF Financial Solutions Insolvency Review
- PayPlan Insolvency Review
- Purnells Insolvency Practitioners Review
- Quality Insolvency Services Review
- Re10 Finance Insolvency Review
- Real Business Rescue Review
- Spencer Rowe Insolvency Review
- The Debt Advisor Insolvency Review
- The Insolvency Practice Review
- Turpin Barker Armstrong Insolvency Practitioners Review
- Umbrella Accountants Insolvency Review
- Unity Corporation Insolvency Review
- Vanguard Insolvency Review
- Wilson Field Licensed Insolvency Practitioner Review
- X Debt Insolvency Review
The insolvency practitioner list above gives you plenty of options to choose the best debt help firm in November 2023.