DFK Gooding Partners
January 9, 2025
Every year, thousands of businesses in Australia close, with many choosing voluntary deregistration as the simplest way to end their company’s legal obligations. In 2023 alone, over 23,000 businesses opted for voluntary deregistration, according to the Australian Securities and Investments Commission (ASIC). For officeholders, knowing what’s required to successfully close a company can prevent delays, additional fees, and compliance issues. If you’re considering deregistration, here are four essential steps to ensure a smooth process.
1. Clear All Outstanding Fees
Before you can deregister your company, it’s essential to ensure that no outstanding fees are owed. Failure to settle your account balance will lead to an automatic rejection of your deregistration application. Officeholders can check their current balance online through ASIC’s Company Portal, allowing you to resolve any unpaid fees promptly. Keeping your fees up-to-date is crucial, as overdue charges not only complicate deregistration but may also impact your standing with ASIC, affecting any future business ventures.
Tip: Consider setting a reminder to check your account balance at least two months before you intend to deregister. This gives you enough time to address any outstanding payments.
2. Confirm Your Company Meets Deregistration Criteria
To proceed with voluntary deregistration, your company must satisfy all necessary criteria. According to ASIC guidelines, companies must meet several requirements, such as:
- No outstanding liabilities: The company must not have any remaining debts.
- Assets under $1,000: The company’s total assets must be less than $1,000.
- All members’ agreement: Every member of the company must agree to deregistration.
- No ongoing legal proceedings: The company cannot be involved in any legal action.
These conditions help ensure that only inactive and solvent companies proceed with deregistration, protecting creditors and other stakeholders. For a complete list of requirements, visit ASIC’s voluntary deregistration page.
3. Apply for Deregistration at Least Two Weeks Before Your Annual Review Fee Due Date
Timing is everything when it comes to deregistration. To avoid additional costs, officeholders should submit their deregistration application at least two weeks before the company’s annual review fee due date. This fee, which varies by company type, is charged annually and is mandatory if the company remains registered at the time of review. Missing this deadline means you’ll be liable for the fee, even if the company is close to completing deregistration. Planning your application timeline carefully can help avoid unnecessary expenses and simplify the deregistration process.
Example: If your annual review fee is due on May 1, submit your deregistration application by mid-April to ensure enough time for processing before the review fee becomes due.
4. Pay the Deregistration Application Fee
To finalize your deregistration, ASIC requires a one-time payment of $49 for the application. After submitting your application online, ASIC will send you an invoice within 14 days, detailing the payment instructions. You have 28 days to complete this payment; otherwise, the deregistration process may be delayed or even ceased.
If you’re filing a paper application, a cheque payment must accompany your submission. Remember, any delays in payment will prolong the process, so it’s best to make arrangements as soon as you receive your invoice.
Pro Tip: If you’re considering deregistration, it’s recommended to apply as early as possible. Early applications allow more time to address any potential issues that may arise, such as unpaid fees or unresolved compliance requirements.
Additional Resources and Support
For further guidance on closing your company, consult ASIC’s Deregistration Guide or reach out to a legal or financial professional who specializes in business closures. The more informed you are about the deregistration process, the smoother and more efficient it will be.
Following these steps ensures a clear and hassle-free end to your company’s obligations.
Contact us for assistance to Deregister a Company in Australia
Complete the quick contact form below with your details and one of our team will be in touch to discuss your requirements. Alternatively, you can call us (08) 9327 1777 or email info@dfkgpca.com.au.
