Voluntary Strike-off

Company-strike-offIf you have a company that has ceased to trade or has never traded there are three options:

Close the Company Down either by:

Voluntary Strike-off

  1. Voluntary Strike-off – this procedure is relevant for a company with little or no assets or liabilities [not to exceed €150 each]
  2. Liquidation – there are different types of liquidations depending on the company’s circumstances. Visit our Liquidation Services page for more information

Or keep the company alive by:

  1. Dormant Company – the company has ceased to trade and has no financial transactions but the members wish to keep the company alive [see below]

It is a common misunderstanding that because a company has ceased to trade or has never traded that there is no requirement to file annual returns. Failure to file tax returns with revenue [unless the company has been de-registered] and file annual returns with CRO can result in penalties being incurred – even when the company has never traded or has ceased to trade.

So if you have a company that has ceased to trade and has very little assets/liabilities, or if you have a company that has never traded, which is the best route – Voluntary Strike-off or Dormant Company?

Voluntary Strike-off – Advantages:

  • Removes the need and costs associated with filing annual returns to the CRO
  • Avoids the risk of incurring penalties through late filing and the possibility of audit and associated costs
  • Voluntary strike-off results in the company being de-registered, thereby giving a clean slate
  • Voluntary strike-off may also mean not having to file any more tax returns with revenue

Dormant Company – Advantages:

  • If the company owes you money [i.e. directors loan account] you will be able to recover monies owed should the company return to profitable trading in the future
  • If you intend to use the company again in the future [within 2 years], treating the company as Dormant will avoid the costs and inconvenience of a voluntary strike-off and the need to incorporate a new company in the future [it also works out more cost effective to file dormant company accounts for 2 years than to strike-off and incorporate a new company during that same period of time]
  • Any accrued losses in the company may be used to off-set future profits made in the same trade thereby reducing corporation tax bills in the years ahead 

Company-strike-offIf you are contemplating striking off a company through voluntary strike-off please talk to us today to discuss your options. closedforbusiness.ie offer a fast, friendly and professional strike-off service. Call us on lo-call 1890 256733 or contact us here