A company remains registered as a company even after it ceases trading. While registered it is still subject to the legal requirements of a registered company, including payment of the annual review fee each year.
If you have no further use for your company and it is not in financial difficulty or insolvent, you may wish to close it down, that is deregister it. A company ceases to exist on deregistration.
Generally, there are two ways you can deregister a company:
- through a members’ voluntary winding-up. This is a procedure for solvent companies initiated by the company’s members and involves the orderly winding-up of the company’s affairs, the appointment of a liquidator to manage the process of realising the company’s assets, ceasing or sale of its operations, payment of its debts (if any) and distribution of surplus assets (if any) among its members.
- by applying to us to voluntarily deregister a company assuming it meets certain legal requirements
There are other reasons why you may consider winding up a solvent company. Companies established before 20 September 1985 may have pre-CGT reserves that can only be unlocked in a tax free manner where the company is liquidated.
Further, certain small business concession can only be unlocked where the company is liquidated.
If you require assistance, please contact us on (02) 8264-0755
All representations and information on this site is general in nature and should not be relied upon as advice. If you require specific advice please contact us.