Reference

Downloadable Forms

Voluntary Deregistration

GENERAL INFORMATION

When a company is no longer required, and when there are no retained profits or assets, the most effective way to dispose of the company is to apply for its deregistration.

QUALIFICATIONS REQUIRED FOR APPROVAL TO BE GRANTED

In order to qualify for deregistration, all of the following conditions need to be met:-

• all members agree to the deregistration;
• the company is not carrying on business;
• the company's assets are worth less than $1,000;
• the company has paid all fees & penalties payable under the Corporations Act;
• the company has no outstanding liabilities;
• the company is not a party to any legal proceedings. Additionally, the person who signs the application for deregistration clearly states that each of the above statements is true.

PROCEDURE

Application is made to the ASIC. Approval is generally automatic. The ASIC then batches up a large number of such applications for publication in the Government Gazette. It is common for the ASIC to delay the publication of the Company’s name for up to 2 months whilst the size of the batch grows to a number acceptable to the ASIC.
The dissolution of the Company will be effected 2 months (previously 3 months) after the Company's name is published in the Government Gazette. This brings to some 5 months the total time required to effect a Company’s dissolution. With a recent change in the Corporations Act, there is no need for companies applying for deregistration to advertise their intention to deregister in a daily newspaper.

AVOIDANCE OF CREDITOR LITIGATION

Having the Company deregistered is no protection against possible creditor litigation. Recent changes to the Corporations Act permits an aggrieved creditor to sue a company without the need for its reinstatement.