Reading time: 3 minutes

Have you sold your business? Are you merging with another business? Are you retiring from your business? These are all reasons to consider closing your current business entity. If your business or company has ceased trading, has little to no assets and has paid all its outstanding liabilities, including employee entitlements and superannuation, then you may consider a process of voluntary deregistration to cease the existence of your company. It is a straightforward process conducted through the Australian Investments & Securities Commission.

Voluntary Deregistration

If you voluntarily deregister your company, this means that your company will cease to exist. Your obligations and duties as a director and officeholder also cease. It can significantly reduce your personal risk of liability. If you voluntarily deregister your company, this means that you are not required to continue to pay the annual review fee, fulfil reporting requirements or to keep the company details up to date with the Australian Securities & Investments Commission. Below, we’ve set out the steps to voluntarily deregister your company.

How Can I Begin Voluntary Deregistration of my Company?

Before you can engage in voluntary deregistration, you need to make sure of the following:

  1. That the company is not currently conducting business;
  2. All of the company members (this means shareholders) agree to deregister the company. You can record this in a circular resolution signed by all shareholders;
  3. The company’s assets are worth less than $1000;
  4. The company has no outstanding debts. This includes no outstanding employee entitlements including no outstanding superannuation. This can be an issue for founders who have not paid themselves superannuation;
  5. The company does not have any outstanding ASIC fees or penalties; and
  6. The company is not engaged in any legal proceedings.

Key Takeaways

If your company has ceased trading and it satisfies the other steps set out above, it is possible to begin voluntary deregistration of the company. It is likely the most straightforward process for officially putting an end to a company’s life and to end your obligations as director and officer of the company. If your company does not meet the tests and requirements for voluntary deregistration, but is still solvent, you can choose to wind up the company instead, which involves a number of additional steps, which we have set out in our article, ‘How to Wind Up a Company’.

Our lawyers have assisted many business owners to exit their business and with selling or transferring any assets, including intellectual property, from the business as required. Questions about voluntarily deregistering your company? Get in touch on 1300 544 755. 

Webinars

How to Recover Unpaid Invoices

Thursday 13 May | 11:00 - 11:45am

Online
What do you do if your customers don't pay your invoices? Attend this webinar to learn about how to recover unpaid invoices.
Register Now

Trade Marks 101

Thursday 17 June | 11:00 - 11:45am

Online
Your trade mark is one of the most valuable assets of your business. It is therefore crucial to understand how to protect your trade mark, avoid disputes, and prevent competitors from infringing on your rights.
Register Now

About LegalVision: LegalVision is a tech-driven, full-service commercial law firm that uses technology to deliver a faster, better quality and more cost-effective client experience.

The majority of our clients are LVConnect members. By becoming a member, you can stay ahead of legal issues while staying on top of costs. From just $119 per week, get all your contracts sorted, trade marks registered and questions answered by experienced business lawyers.

Learn more about LVConnect

Need Legal Help? Get a Free Fixed-Fee Quote

If you would like to receive a free fixed-fee quote or get in touch with our team, fill out the form below.

  • 2020 Excellence in Technology & Innovation – Finalist – Australasian Law Awards 2020 Excellence in Technology & Innovation Finalist – Australasian Law Awards
  • 2020 Employer of Choice – Winner – Australasian Lawyer 2020 Employer of Choice Winner – Australasian Lawyer
  • 2020 Fastest Growing Law Firm - Financial Times APAC 500 2020 Fastest Growing Law Firm - Financial Times APAC 500
  • 2020 AFR Fast 100 List - Australian Financial Review 2020 AFR Fast 100 List - Australian Financial Review
  • 2020 Law Firm of the Year Finalist - Australasian Law Awards 2020 Law Firm of the Year Finalist - Australasian Law Awards
  • Most Innovative Law Firm - 2019 Australasian Lawyer 2019 Most Innovative Firm - Australasian Lawyer