How to close a UK company

How you should close a UK company depends almost entirely on one thing: whether it can pay its debts. A solvent company with no significant liabilities can be closed cheaply by strike off using form DS01, or, if it holds retained profit, more tax-efficiently through a Members Voluntary Liquidation. An insolvent company that cannot pay its debts should be closed through a Creditors Voluntary Liquidation handled by a Licensed Insolvency Practitioner, which deals with creditors properly and protects directors who act responsibly. Trying to strike off a company that owes money usually fails, because creditors and HMRC object, and it can expose directors to investigation. The wrong route is not just inefficient, it can create personal risk. Our chooser tool walks you through the decision in a couple of minutes, and a practitioner can confirm the right path on a free call. Insolvency Service; gov.uk closing a company

Key facts

Solvent, no profit: Strike off (DS01), cheapest route
Solvent, with profit: Members Voluntary Liquidation, often tax-efficient
Insolvent: Creditors Voluntary Liquidation via a practitioner
Wrong route risk: Striking off with debts can trigger objections and investigation

Match the route to the company

Use our closure route chooser to see which option fits your company, then confirm with a practitioner. If there is any doubt about solvency, apply the insolvency tests first, because that single question drives everything else.

Common questions

What is the cheapest way to close a company?

For a solvent, debt-free company, strike off via DS01 is cheapest. But cheap is only right if the company genuinely has no creditors. With debts, a CVL is the proper route even though it costs more.

Can I just stop trading and let the company lapse?

Not safely. You still have filing duties, and an insolvent company left to drift can be wound up by a creditor and your conduct investigated. Close it properly.

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How to close a UK company. How you should close a UK company depends almost entirely on one thing: whether it can pay its debts. A solvent company with no significant liabilities can be closed cheaply by strike off using form DS01, or, if it holds retained profit, more tax-efficiently through a Members Voluntary Liquidation. An insolvent company that cannot pay its debts should be closed through a Creditors Voluntary Liquidation handled by a Licensed Insolvency Practitioner, which deals with creditors properly and protects directors who act responsibly. Trying to strike off a company that owes money usually fails, because creditors and HMRC object, and it can expose directors to investigation. The wrong route is not just inefficient, it can create personal risk. Our chooser tool walks you through the decision in a couple of minutes, and a practitioner can confirm the right path on a free call.

Speak to a Licensed Insolvency Practitioner

Tell us briefly what is happening and we will arrange a free, confidential, no obligation call with a Licensed Insolvency Practitioner. The earlier you get advice, the more options you usually have.

Free, confidential and no obligation. We are an independent information service and introduce directors to a Licensed Insolvency Practitioner. This is general information, not regulated advice.