Dissolve a company or put it on ice?

Hopefully, running your own business has been a good experience. When business comes to an end, we know that the double barrelled question “should I dissolve my company or put it on ice” is often asked.

If you have finished with the company and no longer need it, then dissolve it. Keeping it will only add to your costs. A simple dissolution guide is here.

It is not possible to ever make a traded company become truly dormant again. There will always be things to do. A dormant company is one which has been incorporated and which has never traded. So if you want to put your traded company “on ice” you should be aware that Companies House will still want a Confirmation Statement every year, and you will still have to file statutory accounts. You cannot use the Companies House form DCA (Dormant Company Accounts) to do this, because there will be legacy figures which are carried forward each year.

So it’s up to you. Keep the company alive and do the annual submissions yourself to keep costs down. Or keep paying the accountant (a reduced fee) to stay on side with the government.

We know from experience that people who “put the company on ice” normally keep it there for about three years, keep paying professional fees, and then go and dissolve the company anyway. If that’s going to be you, then maybe you should take the easy option and just dissolve it now? You can always incorporate a new company later.

If you do want to keep the company on ice (and not use it at all) we will discount our fees by 50%. However if the company is used, even if it’s for just one project earning one fee, then normal accounts are needed and normal fees will apply. OK, if it was genuinely only one project and one fee then you may not need to pay exactly 100% of our standard costs, but it will be something nearer to 100% than to 50%.