If you’ve recently submitted a strike-off application to Companies House to close your company, only to find that it’s been rejected, it can be a confusing and stressful experience. A rejected strike-off application may feel like a setback, but it’s not the end of the road. In this blog, we explore why your strike-off application might be rejected, what steps you can take next, and how to resolve any issues to strike off your company successfully.
Understanding the strike-off process
Before exploring why your strike-off application might have been rejected, it’s important to understand the process. A strike-off is the formal closure of a limited company in the UK, initiated when the company is no longer trading, has no assets or liabilities, and isn’t involved in legal disputes. The application is submitted to Companies House, which will remove the company from the official register if all criteria are met.
Common reasons for rejection of a strike-off application
There are several common reasons why a strike-off application might be rejected. Understanding these reasons can help you identify potential issues with your application and take corrective action.
1. The company is still trading
A common reason for a rejected strike-off application is that the company is still trading. Companies House requires confirmation that the company has ceased all business activity for at least three months before submitting a strike-off application. If your company has been trading recently, ensure all business activity, including asset disposal, debt settlement, and contract finalisation, is completed before reapplying.
2. Outstanding liabilities or debts
A company must have no outstanding debts or liabilities to qualify for strike-off. If your company owes money to creditors or HMRC, the application will be rejected. To reapply, settle any outstanding debts and make arrangements with creditors, such as negotiating payment terms or entering a Company Voluntary Arrangement (CVA).
3. Failure to submit required documents
When submitting a strike-off application, you must make sure all documents are correct and up-to-date. If the necessary paperwork, such as confirmation of the company’s financial standing, is missing or inaccurate, Companies House may reject your application.
Take the time to carefully review the information you’ve provided and make sure all documents are complete and accurate before re-submitting your application.
4. The company hasn’t filed annual returns or accounts
Companies House requires that all companies file annual accounts and returns on time. If your company has failed to meet these filing obligations, the strike-off application will likely be rejected. In this case, you must bring your company’s filing status up to date and make sure all outstanding filings are submitted before applying for strike-off.
5. Objections from creditors or interested parties
If a creditor or another interested party objects to the strike-off your application will be rejected. Creditors have the right to challenge a strike-off application if they believe the company still owes money or they’ve not been properly informed about the closure.
If you suspect a creditor may object, it’s a good idea to communicate with them directly and resolve any disputes before re-submitting your application.
6. The company is subject to ongoing legal action
If the company is involved in any legal disputes, such as ongoing litigation or an investigation by HMRC or another regulatory body, a strike-off application will be refused. Companies House will want to ensure that all legal matters are resolved before removing the company from the register.
Make sure that any pending legal issues are concluded before submitting a strike-off application. That may involve reaching settlements, concluding disputes, or closing outstanding investigations.
Steps to take after a rejected strike-off application
If your strike-off application has been rejected, don’t panic. There are clear steps you can take to rectify the situation and make sure your future application is successful.
1. Address the reasons for rejection
The first step is to carefully review the rejection notice from Companies House, which will typically outline the reasons why the application was rejected. Once you understand the issue, you can take the necessary actions to address it.
For example, if your company still has outstanding debts, work with creditors to settle those debts. If the company has been trading, make sure all business activity has ceased for the requisite three-month period before re-submitting your application.
2. Bring your company records up to date
If your company accounts or annual returns are out of date, you must ensure that all required filings are made. Submit any missing documents to Companies House and make sure that your company is in good standing before applying for strike-off again.
3. Consult with professionals
If you’re unsure why your strike-off application was rejected, or how to resolve the issues, it may be helpful to consult with professionals. Insolvency practitioners or corporate solicitors can help guide you through the process and advise on how to make sure your application is approved.
4. Re-submit your application
Once the issues have been resolved you can submit a fresh strike-off application. Be sure to double-check all the information and make sure all requirements have been met to avoid another rejection.
What happens after a successful strike-off?
Once your strike-off application is approved, Companies House will remove your company from the official register. That marks the formal closure of the company, and you’ll no longer be required to submit annual accounts or returns.
However, if you ever need to re-establish a company or face further difficulties, there are options available, and we can help you explore these.
Moving forward after a rejected strike-off application
While a rejected strike-off application can be frustrating, it’s important to remember that’s not the end of the process. By understanding the reasons behind the rejection and taking the necessary steps to resolve the issues, you can successfully strike off your company. Whether you need to clear up outstanding debts, update your records, or deal with legal disputes, the right approach can make all the difference.
Ask an expert
If you’re struggling with a rejected strike-off application or need help closing your company, our experienced team of insolvency experts is here to help. We can guide you through the process and ensure your company is successfully struck off. Call us on 0800 246 1845 or email mail@leading.uk.com for a free consultation today. Let us help you take the next step toward closing your business smoothly and efficiently.
