Compulsory strike off is the process of dissolving a company from the Companies House Register. The Companies House has the authority to forcibly strike off a company from its record owing to its non-compliance. There are two ways to strike off a company: voluntarily and compulsory. In this blog, we’re going to discuss what is compulsory strike-off and how to stop it.
What is a Compulsory Strike Off?
According to section 1000 of Companies Act 2006, the registrar of Companies House can strike off a limited company after confirming that it no longer trades or runs a business. Registrar has the authority to forcibly remove a company/business from the Companies House Register.
If the Companies House found that your company is not complying with its standard, it may forcibly strike off your limited company. Those reasons include:
- Failure to file the annual confirmation statement (Form CS01)
- Failure to file annual accounts on time
- Failure to inform companies house about the change in your registered office address
If a company has stopped trading, directors have the authority to forcibly struck off the company from companies house’s register as an easy and inexpensive way to dissolve the company.
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The first step before striking off a company is taken by companies house registrar. He/she sends two formal letters as a warning mentioning the negligence on filing confirmation statements and annual accounts that will, ultimately, remove the limited company from their record.
If the company has changed its address, it means that the directors haven’t received the letters. Nonetheless, companies house will ensure and confirm the complete stoppage of a limited company before its dissolution.
Received Compulsory Strike off Notice – How Do I Stop It?
Here are the two ways through which you can stop the compulsory strike-off process to clear the misunderstanding or to avoid it:
- Provide a response against the notice without a delay clarifying that your company is still active and trading. Let them assure that they’re willing to rectify possible mistakes while submitting confirmation statements and annual accounts. You can also ask for an extension to the companies’ houses to manage your accounts.
- You should make sure that confirmation statements and annual accounts are submitted to the companies house on time. A possible delay may cause trouble in the future. So, it’s recommended to be vigilant before.
If you’re on the verge of dissolution, let us know before it’s too late.
If you’re looking for professional advice regarding compulsory strike off or want to continue/re-establish your business, we’d provide you a deep insight to resolve your issue after discussing it.
In addition, if you’re looking for a cost-efficient way to cease your company, don’t hesitate to contact us.
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Disclaimer: This blog provides general information about the Compulsory-Strike Off.