Tips to Protect Your Company from Compulsory Strike Off

This article will give you essential tips to prevent your company from getting dissolved by compulsory strike-off.                        

Published over a month ago
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Your company is like a part of your family. You've spent much of your time and efforts establishing your company to its peak form. As a result, most owners build an emotional attachment to their companies. But it can all come crashing down if you aren't careful. If you notice a compulsory strike-off, that's a red alert for your company. It means that the authority wants to dissolve your company forcefully.

But don't panic right away. If you take the right actions, your beloved company can be saved. That's why we've compiled a list of some crucial tips which will help you protect your company from a compulsory strike-off. 

Things You Should Know About Compulsory Strike Off

Strike-off usually means the legal process of ending a company. This process is authorized by Companies House. However, sometimes the owners of a company themselves apply for a strike-off to liquidize the company's assets. This is known as a voluntary strike-off. But if the Companies House forces you to dissolve your company, it's a Compulsory Strike Off. It means that the Companies House has reasons to believe that your company is not involved in any trading activity. Companies House can also send strike-off notices to non-compliant companies. What should you do if you get the strike-off notice but don't want to wind up your company? First, you have to prove to the Companies House that your company is not involved in any suspicious activity. For this, you have to follow these essential tips. 

Act Quickly 

One of the most critical steps you need to take after getting the first compulsory strike-off letter from the Companies House is to issue a response. Companies House sends the first notice to the companies they suspect. If the companies fail to respond, they'll get a second letter. If the companies fail to respond to the second notice, the Companies House will publish a strike-off notice in the Gazette. From that point forward, it will become highly challenging for the owners to prevent their companies from getting dissolved. So if you get a strike-off notice in the Gazette, things will become very complicated for you. You must act quickly after getting the first letter and respond immediately. 

Send a Suspension Letter

If you think the information about your company mentioned in the strike-off notice is incorrect, you must send a suspension application to the Companies House. It's an application to suspend the strike-off procedure. You need to show relevant information and make a compelling argument to prevent your company from getting liquidated. You can sit with the shareholders and outstanding creditors to discuss how you want to proceed. In the suspension letter, you should address the issues mentioned in your strike-off letter. But you must broadly discuss the following topics: 

Include Missing Accounts

Usually, when the Companies House has an insufficient statement and paperwork about your company, they'll move to the strike-off process. So you have to provide the necessary documents in the suspension letter. You can include your annual accounts and confirmation statement (DS01) to show your legitimacy. This is a crucial document to justify your statement. If Companies House has some missing account details, you can also provide that. In this way, you can demonstrate your authenticity. 

Provide Relevant Statements

To prevent your company from getting struck off, you have to ensure that you respond to all the issues that Companies House has mentioned in the strike-off letter. It means you have to include the necessary paperwork and align them with the requirements of Companies House. It is an essential factor because if your paperwork checks out, there is a high possibility that the Companies House will consider your application to suspend the strike-off. 

Include Proof of Your Trading Activity

One of the main reasons why Companies House sends strike-off notices to companies is the inactiveness of trading. If any company doesn't have trading activities for a certain period, Companies House considers these companies as suspicious. So you must include reliable information proving that your company is still doing trading and other transactions. You can also provide the trading history to strengthen your statement further. Interested in doing a portfolio analysis of your business? Click here

Include Your Creditors

Creditors can also play an important role in suspending strike-off. Of course, most of your outstanding creditors will want to suspend the strike-off process, but they have their agenda. If your company gets struck off, the creditors won't be able to retrieve their money invested in your company. That's why they can file their objection against the strike-off to the Companies House. 

Take Help From Experts

Filing against the compulsory strike-off is a significant factor in saving your company. So it might be better to leave it to the professionals. Lawyers and experts have years of experience in handling such situations. They know what paperwork needs to be submitted and what additional steps are required to convince the Companies House. If you don't want to take risks, consult with experts. Thus you can get some insights and knowledge on how to file a suspension letter correctly. 

Compulsory Strike Off Is Not Always a Bad Thing

Most of the time, Companies House sends strike-off notices to struggling companies. So if your company is not making a profit and going through a tough time, it's better to let the strike-off proceed, and you can take the liquidated money to invest elsewhere. Here are some investment ideas you can check out.


Following these tips can easily protect your company from compulsory strike-off. You just have to make sure to have the proper documents in place to make a compelling argument against the Companies House.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Please refer to our Terms of Use for any information regarding our disclosure principles.

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