1. Why conduct a voluntary strike off?
Circumstances may arise where a company is no longer needed, for example the company has ceased to trade, has never traded or wants to re-establish itself in a different form. Rather than continue to incur the costs associated with keeping the company it may be prudent to apply to have the company removed from the Register of Companies.
2. What is a voluntary strike off?
Section 311 of the Companies Act 1963 allows for companies to be voluntarily struck from the register of companies, at the discretion of the Registrar. The company must satisfy the following conditions in order to be considered eligible for a voluntary strike off:
- The amount of any assets of the company does not exceed €150
- The amount of any liabilities of the company (including contingent and prospective liabilities) does not exceed €150 and
- All outstanding returns to the Companies Registration Office and Revenue Commissioners must be up to date.
3. What is the process?
If the company meets the above criteria and has all its CRO and Revenue filings in order it can convene a board meeting to consider voluntary strike off. The next step is to apply to the Revenue Commissioners for a letter of no objection to the strike off. On receipt of this letter the company must then advertise its intentions in a national newspaper and within six weeks of the advertisement make its strike off application to the Registrar of Companies.
4. What are the benefits to your business?
You will no longer be burdened with the statutory filing requirements which the company needed to observe while in existence. Choosing the voluntary strike off process can be less cumbersome and less costly than liquidating a company.