How to Close a Limited Company that Never Traded

In short:

Closing a company that’s never traded is much easier than closing an active company.
It’s possible to do it yourself without the help of a third party
Prices start from £33 to submit the relevant forms.

Among the myriad company names found at Companies House resides many that never saw the light of day. These are businesses that were set up before minds were changed, circumstances altered, or funding never came through.

Thankfully, because these companies never actually got to the point of trading, it’s far simpler to close them down compared to an established business. In fact, in some circumstances, it’s possible to do it yourself without the need for a third party. Insolvency expert and Senior Client Manager at Forbes Burton, Ben Westoby, adds that “it’s a fairly straightforward process that we’re able to complete for clients, but if they’ve got the time, it’s also something that they can do themselves. We’ve given many clients the info needed to perform a solid DIY closure”.

Interested in closing your non-trading company? Here’s what you need to know.

Do you really want to close it?

It may sound like a silly question, but business directors often regret closing down a business if they find they have use for it further down the line.

The main source of regret is usually from losing the rights to a business name. Once a company has been closed, its name is available to use for anyone else. There have been countless instances of directors wishing to reuse the names of their defunct companies, only to find that they can’t as they’re now registered to others (or worse, being used by rivals).

Westoby recommends that “if you think that you may have a need for the company name, or possibly the actual business again sometime in the future, it may be more prudent to leave the business dormant rather than closing it.”

Companies that have never traded will already be considered dormant when it comes to Corporation Tax, but annual accounts will still need to be filed to Companies House in order to prevent it from being closed.

Does your company qualify for a simple closure?

Before you begin, you’ll need to check if Companies House will actually allow your business a simple closure. Companies House will not strike off your business if it has done any of the following within the last three months:

Done any trading – This means ANY trading, however small it may have been.
Conducted a name change
Conducted any other activity apart from those needed legally or as part of a company closure.

Is the company ready for closure?

Directors will need to ensure that all loose ends are tied up before pursuing a dissolution. This means that any debts are paid off and any assets have been transferred elsewhere. Westoby warns that “any assets left within the company will automatically become property of The Crown once the company is closed.”

It’s also recommended to close off any bank accounts set up in the company’s name, as well as any accounts that may be open with suppliers.

Complete and submit a DS01 form

A DS01 form is an application form to formally strike a business off from Companies House.

You can find a copy of a DS01 here, which can be printed off, completed, and sent to Companies House.

The easiest option for many, however, is probably to apply to dissolve the company online instead via the Gov.uk website.

Whichever method you choose, you’ll find that there is a fee applicable.

It is slightly cheaper to complete online, though. As of September 2025, the fees stand at £44 for a posted paper application, and £33 to apply online.

Notify the relevant people

Anybody associated with the business should be notified of your intention to close it down. It almost goes without saying that all directors and other shareholders should be privy to this decision, but they’ll also need copies of the DS01 form or your online application as well.

Aside from directors and shareholders, you should also send a copy of the DS01 to creditors, employees, pension managers and any trustees of the business, though those that have never traded should have few of these to consider.

It’s important that this is done within seven days of the application being made, otherwise legal action can be taken against you.

The legal action can be substantial too, with prison sentences of up to 12 months for English and Welsh companies, or six months for Scottish and Northern Irish businesses.

Westoby adds that “it’s highly recommended to keep hold of some proof of delivery of these forms. If you decide to post them, it’s definitely worth paying for a ‘signed for’ service or similar.”

The strike off process begins

After your DS01 form has been submitted, Companies House will be in touch to confirm that the application has been filled out correctly.

The application is then published in The Gazette, providing notice to any interested parties who may wish to object that they have two months to raise their issue.

As you may imagine, this is the time-consuming part of closing a company. For those that have submitted the strike off application, this stage is simply a matter of waiting until everything is formalised.

Completion

Assuming that your business doesn’t receive any objections to its closing, another notice is then published in The Gazette. This time, it is simply to mark that the company has been dissolved.

This means that it has been struck off the register at Companies House and now ceases to exist as a legal entity

Need answers on company closures?

Forbes Burton has been helping businesses to navigate closures since 2009. Our team of helpful advisers are able to provide practical advice on every aspect of company closure, and offer free, no-obligation initial consultations.

Call today on 0800 975 0380 or email advice@forbesburton.com for a free consultation with one of our expert advisers to find out how we can help business owners navigate an uncertain future.