In Show 086 – Deregistration and Voluntary Winding Up originally broadcast on Facebook Live on Monday 30 April 2018 we explore this interesting topic.
On Fast Fix Monday today we are talking about deregistering your company and members wind-up.
As your company comes to the end of it’s lifecycle you may want to consider deregistration. Companies cost money to keep in operation so one option is to simply deregister it. There is an ASIC form that you have to submit to start this process. All the members of the company have to sign-off on the deregistration. The company cannot be currently carrying out any business and can’t owe any debts. It also has to have assets that are worth less than $1000. All penalties and fees have to have been paid. The business can’t be involved in any legal proceedings.
Liquidation is usually associated with a company in financial difficulty. But that’s not always the case. A members voluntary liquidation is something different. If the business is solvent a liquidator can still be appointed to sell-off the companies assets. There isn’t a one size fits all solution to this. If you are thinking about using this to wind-up the company you need to consult your advisers first. There are some tax benefits to doing this. But it is more difficult to re-register a company that has been subject to a voluntary liquidation.
More about this Show
We started Business Legal Lifecycle to create a simple way for you to understand complex legal terms. Most importantly we want to help you to develop a plan to take your business successfully into the future. There’s a startling statistic the underscores the importance of developing a solid plan. The majority of business owners are just seven months away from losing everything. A single aspect of your business that is not set-up correctly can shut down your whole operation very quickly. Legal advice is not cheap and even when you can afford it there is often a divide between lawyers and their clients. We want to close that gap once and for all. We want to put legal knowledge and tools into your hand to prevent the worst from happening to you.
Twice a week we are going to deliver those tools right to your home or office with Business Legal Lifecycle TV. We’ll start the week with Fast Fix Monday, a short 5-10 minute video that will tackle a single issue that businesses have to deal with. Then on Wednesday’s our main show will feature with more fulsome discussions and interviews all delivered in a straightforward and easy to understand format.