How do I close down a company?
Voluntary deregistration is the simplest way to close down a company. To have your company deregistered, you will need to prepare a Members Resolution and apply to the Australian Securities and Investments Commission (ASIC).
You may decide to close down a company if:
- the company is no longer trading.
- the company is dormant.
- the trustee of your trust or self-managed superannuation fund has changed from a company to an individual.
- you no longer require the company.
Step 1 – Prepare a Members Resolution
You will need to prepare a Members Resolution which is a legal document required when voluntarily winding-up a company. The members are the shareholders and all members have to be in agreement to close a company down. Your accountant can prepare the Members Resolution for you.
The Members Resolution states:
1) All members of the company agree to deregister
2) The company is no longer trading
3) The company’s assets are worth less than $1000
4) The company is solvent and has no outstanding liabilities
5) The company is not a party to any legal proceedings
6) The company has paid all fees and penalties payable under the Corporations Act 2001
Step 2 – Apply for deregistration
Along with the Members Resolution, you will need to complete and lodge Form 6010 - Application for voluntary deregistration of a companywith ASIC. Your accountant can prepare and lodge the form for you. Any outstanding ASIC fees should be paid before the application is lodged. It takes approximately one week for ASIC to process Form 6010.
All companies applying to be deregistered are published in the Commonwealth of Australia ASIC Gazette for two months. If there are no objections to your application, ASIC will remove your company from its register. The company will no longer be considered a legal entity and ASIC will notify you in writing that the company has been dissolved.