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Deregistering a company

ASIC figures disclose that approximately 5% of companies are deregistered in Australia each year. Of those, around 60,000 are voluntary deregistrations, as opposed to ASIC-initiated deregistrations. With the release of our new document package later today, Company Deregistration — voluntary, I address common questions about deregistration below. Cassandra Townsend, Thomson Reuters

What does deregistration mean?

When a company is deregistered, it closes or ceases to exist. This also signals the end of the obligations of the company officeholders. The company is not removed from the ASIC register but rather, its status is displayed as deregistered.

Why deregister a company?

It's a good idea to consider deregistering a company if it's no longer trading or no longer required.

There are costs associated with allowing a company to remain dormant. Also, while a company remains registered, it and its officeholders are subject to legal requirements imposed by the corporations legislation.

When can a company apply for deregistration?

Under the Corporations Act, a company can apply for deregistration as it meets 6 conditions. On making the application to ASIC for deregistration, the person making the application must declare that all 6 conditions have been satisfied.

Voluntary deregistration or winding up?

There are 4 ways to close a company:

  • voluntary deregistration;
  • winding up a solvent company;
  • ASIC-led deregistration; or
  • insolvency.

If a company does not fulfill the conditions for deregistration, it may need to look into winding up. They are different.

How can Cleardocs assist with closing down a company?

Through Cleardocs, you will be able to create your members and directors resolutions for voluntary deregistration and lodge your Form 6010 with ASIC. We will also detail the steps a company must take in relation to its financial accounts and tax obligations.

More Cleardocs information on related topics

You can read earlier ClearLaw articles on a range of company related topics.

Order Cleardocs company packages

 

Lawyer in Profile

Paul Ellis
Paul Ellis
Special Counsel
PH: 61 3 9258 3524

Paul is a Special Counsel in the Maddocks Commercial team with particular expertise in commercial agreements for the supply of goods and/or services, the Personal Property Securities Act 2009, the National Consumer Credit Protection Act 2009 and the National Credit Code and the Australian Consumer Law.

Paul's key areas of practice include:

  • Australian Consumer Law;
  • credit and securities law;
  • commercial law and contracting;
  • government contracts; and
  • trust and superannuation law.

Before joining Maddocks, Paul was employed for 13 years with the Victorian Department of Justice, principally as a Deputy Registrar in the Victorian Magistrate's Court, but also as a legislation, policy and project officer for the Department.