February 12th, 2023
The concept of striking off is a process designed to terminate the legal existence of a company in the UK. It involves a formal request at Companies House by the directors of the company and, once accepted, the company is removed from the Companies House register.
Can I Strike Off A Company With A Bounce Back Loan?
Yes, it is TECHNICALLY possible to strike off a company with a Bounce Back Loan (BBL), but it is very likely to be objected too. In the UK, the process by which a company ceases trading and is dissolved is referred to as striking off, and this takes place at Companies House. In order to strike off a company with a Bounce Back Loan, the following criteria must be met:
The company must have been trading for a minimum of three months
The company must not have traded, had any assets or liabilities, or changed its name within the last three months
The company must not have any outstanding debts, including any outstanding loans from the Bounce Back Loan Scheme
All shareholders of the company must approve the striking off of the company
All creditors of the company must be notified of the striking off.
If all of the above criteria are met, then the directors must fill in a DS01 form, which will be submitted to Companies House. The DS01 form will also require the following information:
The full name of the business
The registered address of the business
The company registration number
The incorporation date
The company director’s name and address
A signed statement confirming that all creditors have been informed of the striking off of the company
Once the DS01 form has been completed, it must be submitted to Companies House. The striking off process can then start and will usually be completed within three months.Why Might An Objection Be Lodged To Dissolving A Company With A Bounce Back Loan?
An objection to dissolving a company with a Bounce Back Loan may be lodged if the loan was taken out for the purpose of continuing to trade. This is because when a loan is taken out for the purposes of continuing to trade, the creditor (in this case, the government) has the right to be made aware of the company's intentions. Additionally, an objection may be lodged if the company has outstanding debts, including an outstanding Bounce Back Loan. In such cases, the creditors have the right to be paid before the company can be struck off.
What Happens If A Creditor Objected To My Company Being Struck Off?
If a creditor objects to your company being struck off, then the striking off process will not be allowed to proceed anymore until the creditors’ objections are resolved. In order to resolve the objection, the creditor must be paid the amount that is outstanding. Once the creditor has been paid, they must then withdraw their objection to the company’s striking off.
Conclusion
In summary, it is possible to strike off a company with a Bounce Back Loan, although the directors of the company must meet certain criteria in order to do so. Additionally, an objection may be lodged to dissolving a company with a Bounce Back Loan if the company is still trading, has outstanding debts, or the loan was taken out for the purpose of continuing to trade. If a creditor objects to the company’s striking off, then the directors must resolve the objection by paying the outstanding debts before the process can be completed.