You may wish to voluntarily deregister a company that is no longer trading, especially if you no longer require it. Deregistering a company means that it ceases to exist as a legal entity. Ensure all tax and superannuation obligations are up to date before voluntarily deregistering a company. This includes:
- finalizing the end of year reporting, for example, Single Touch Payroll (STP) reports
- paying all outstanding debts
- Company is not a party to any legal proceedings
- The assets are worth less than $1,000.
- finalizing the company’s superannuation affairs, including paying superannuation guarantee amounts and charges
- lodging all overdue and final taxation forms, including tax returns, activity statements, fringe benefits tax returns and taxable payments annual reports
- Finalizing lodgement and other obligations if the company is part of a goods and services tax (GST) or income tax (IT) group or a partner in a partnership.
- ensuring a replacement trustee is appointed if the company is acting as the corporate trustee of a superannuation fund or trust
Directors of a company may still be liable for some debts incurred before deregistration. For example, if a company does not meet its PAYG withholding or superannuation guarantee charge (SGC) obligations, the ATO may recover these amounts from former directors of the company under the director penalty regime.