Closing a business is rarely as simple as just “turning off the lights.” In the UK, removing a company from the official register is known as striking off, handled through Companies House. Whether you’re winding down a side hustle or closing an inactive company, getting the process right in 2026 is essential to avoid legal or financial issues later.

1. Is Your Company Eligible?

Before applying, your company must meet the legal conditions set under the Companies Act 2006.

To qualify for a voluntary strike-off, in the last 3 months, your company must NOT have:

• Traded or carried on business
• Changed its name
• Engaged in non-essential activities (except those required to close the company)
• Been involved in ongoing legal proceedings or insolvency (e.g., liquidation)

2. Key Changes & Fees in 2026

As of February 2026, filing with Companies House is more cost-effective online:

Note: Applications are typically paid online via card. If using company funds, make sure all outstanding liabilities are settled first.

3. Step-by-Step Process

Step 1: Pre-Closing Chores

Before submitting your application, make sure everything is in order:

• Settle all debts: Pay suppliers, utilities, and outstanding taxes
• File final accounts & tax returns: Inform HMRC and submit your final Corporation Tax return
• Dispose of assets: Sell or transfer business assets appropriately
• Close bank accounts: Any remaining funds after dissolution may pass to the Crown as bona vacantia

Step 2: File the DS01 Form

Submit your strike-off application online via Companies House.

You’ll need:

• Company number
• Authentication code
• Approval from a majority of directors

Step 3: Notify Interested Parties

Within 7 days of submitting the DS01, you must notify:

• Shareholders
• Employees
• Creditors (including HMRC and banks)
• Any directors who did not sign the form

4. What Happens Next?

Once your application is accepted:

• First Notice: Published in The Gazette announcing the proposed strike-off
• Objection Period: A 2-month window for objections
• Final Notice: If no objections are raised, the company is dissolved and ceases to exist legally

5. Voluntary vs. Compulsory Strike-Off

• Voluntary Strike-Off: You choose to close a solvent company properly
• Compulsory Strike-Off: Initiated by Companies House due to non-compliance (e.g., missed filings)

Important: Repeated non-compliance can lead to penalties, investigations, and in serious cases, director disqualification.

Final Thoughts

Striking off a limited company is the simplest and most cost-effective way to close a solvent business but only if done correctly. Missing steps like clearing liabilities, filing final returns, or notifying stakeholders can lead to delays or even restoration of the company later.

If you want to close your company without stress or risk, having the right guidance makes all the difference. At Pro Taxman, we support business owners not just in growth, but also in making clean, compliant exits so you can move on to your next venture with confidence.