Pros and Cons of Limited Company Dissolution

In certain circumstances, dissolving your company, (also known as having it "struck off") can be the right choice, but it's important to be aware of the pros and cons.

If the company has ceased trading and you are unlikely to need it in the future, striking off can be an efficient way to dispose of it. You simply have to tie up loose ends with creditors and then notify Companies House and everyone concerned of your intention to dissolve the company. If no objection is received within three months, the company will be dissolved.

The downside of dissolving your company is that if you change your mind and want to trade again, you might not be able to. In this scenario, it is better to have the company made dormant. It's also important to be aware that if Companies House suspects you are attempting to dissolve the company to avoid creditors, you could be prosecuted.