At Venn Accounts, we work with startups and early-stage companies every day and while we love seeing clients grow, there are also times when winding down a company is the right move.
There are four main ways to close a UK limited company, depending on your circumstances:
- Voluntary Strike-Off (DS01): The simplest option for solvent companies with no or minimal assets.
- Members’ Voluntary Liquidation (MVL): For solvent companies with significant assets (over £25,000), offering tax-efficient distribution.
- Creditors’ Voluntary Liquidation (CVL): For insolvent companies that can’t pay their debts.
- Compulsory Liquidation: When creditors force an insolvent company to close through court action.
This guide focuses on Voluntary Strike-Off, the most common route for solvent startups, and touches briefly on MVL which may be relevant if you have significant retained earnings.
If your company is insolvent (unable to pay its debts), we unfortunately cannot assist directly with the closure process, but we can recommend trusted insolvency practitioners who specialise in these situations.
Voluntary Strike-Off
Best for: Companies that are no longer trading, have no debts, and have no assets.
Voluntary strike-off (sometimes called dissolution) is the simplest way to close a UK limited company. If your company is dormant or inactive, has no outstanding liabilities, and no assets, then this is likely the route for you.
Key Requirements:
- The company must not have traded or changed names in the last 3 months.
- It must have no debts (HMRC, suppliers, payroll, etc.).
- All assets must be distributed before applying (cash, equipment, IP, etc.).
- The company must be solvent.
Step-by-Step:
Why choose strike-off?
- Low cost – No need for a liquidator
- Fast and simple – Especially for dormant or non-trading companies
- You stay in control – Directors manage the process
At Venn, we have helped numerous founders prepare for a strike-off, making sure all filings and distributions are sorted before submission. It’s a clean, compliant way to close the books and move on.
What About MVL (Members’ Voluntary Liquidation)?
If your company is solvent and has assets of more than £25,000, you may benefit from a Members’ Voluntary Liquidation (MVL). An MVL is a formal liquidation process that allows you to extract retained profits tax-efficiently, often benefiting from Business Asset Disposal Relief (formerly Entrepreneurs’ Relief).
However, MVLs require a licensed insolvency practitioner to act as liquidator.
⚠️ Please note: If your retained profits or remaining assets exceed £25,000, Venn Accounts cannot assist with the closure. You will need to engage a licensed liquidator.
We’re happy to refer you to a trusted insolvency partner if this is the right route for you.
Summary: Which Route Is Right?
| Scenario | Route | Can Venn Help? |
|---|---|---|
| Company is dormant, no debts, no assets | Voluntary Strike-Off (DS01) | ✅ Yes |
| Solvent company, assets under £25,000 | Voluntary Strike-Off | ✅ Yes |
| Solvent company, assets over £25,000 | Members’ Voluntary Liquidation | ❌ Licensed liquidator required |
| Insolvent company with debts | Creditors’ Liquidation / CVL | ❌ Out of scope |
Need to Close a Company?
If you’re unsure whether your company qualifies for strike-off or want support preparing final accounts before submitting your DS01, we’re here to help.
We’ve supported businesses through every stage of the business lifecycle, including knowing when and how to close things down the right way.
Get in touch with Venn Accounts today – Contact Us.
