Since the impact of COVID-19 we have seen a large increase in the number of companies applying for voluntary strike off. Directors and practitioners had more time to look at what companies had ceased trading or never traded and it was a good time to apply to reduce costs for companies that were no longer required. If a company cannot satisfy the requirements, a member or creditors voluntary liquidation should be considered.
Voluntary Strike off is a cost effective way of dissolving a company that has ceased to trade or has never traded. Our previous article sets out the conditions that a company must satisfy in order to apply for voluntary strike off.
In addition to these criteria some of the other points to consider include:-
- There is no requirement to file a balance sheet with the strike off application however the company should have updated accounts to ensure the company has no assets or no liabilities in excess of €150
- Also no netting off the assets vs the liabilities!
- A company should examine all its liabilities and contingent liabilities that don’t appear on a balance sheet to ensure they satisfy the requirements
- If there are other liabilities or there has been complex transactions in the company previously a members voluntary liquidation might be the better option
- The date of cessation for Revenue is important as this is the date Revenue expect the company to file returns up to and can delay issuing the letter of no objection
- If there is inter-company loans or loans owed back to directors these should be dealt with and documented prior to applying and tax and legal advice obtained
If you are require assistance in applying for voluntary strike off please contact any of the team on 059 9186776 or firstname.lastname@example.org
Note: The content of this article is provided for information purposes only and does not constitute legal or other advice.