To voluntarily deregister a company, certain conditions must be met before the Australian Securities & Investments Commission (ASIC) will accept an application. Firstly, all members of the company must agree to the deregistration. The company should not be conducting any business and must have assets worth less than $1,000.
It is also essential that the company has no outstanding liabilities, including unpaid employee entitlements, and is not involved in any legal proceedings. Additionally, all fees and penalties payable to ASIC must be settled. Once these conditions are satisfied, an Application for voluntary deregistration of a company (Form 6010) can be lodged along with the required fee. It's important to apply for deregistration at least two weeks before the annual review fee due date to avoid additional charges.
For a detailed guide and to submit the application, you can visit the ASIC website.
Deregistration of a company is a significant legal step that effectively ends the company's existence. This process removes the company's ability to conduct business, hold assets, incur debts, or enter into contracts. The Australian Securities and Investments Commission (ASIC) maintains a record of deregistered companies, which is accessible for historical and legal purposes. Reinstatement is possible, but it requires a court order or a decision by ASIC, which can be a complex and potentially costly process. It's akin to reviving a company from a state of non-existence, restoring its rights and obligations as if it had remained registered.
When considering deregistration, it's essential to ensure all obligations to ASIC are fulfilled, including the payment of any outstanding fees. Failure to do so can impede the deregistration process. The Form 6010 is a critical document in this procedure, serving as the formal request for deregistration. Accompanied by the necessary fee, it signals to ASIC that the company is ready to cease operations and exit the corporate registry. However, the process is not immediate; it typically takes around two months for ASIC to finalize deregistration, during which time the company's status will be in transition.
It's crucial for company directors and stakeholders to be fully aware of the implications of deregistration. Not only does it affect the company's legal standing, but it also has ramifications for its business names and any associated rights or liabilities. The decision to deregister should be made with careful consideration of all these factors, and with the understanding that once the process is complete, the company's journey as a legal entity comes to an end—unless it is reinstated, which allows it to resume its place in the business world as if it had never left.