Some clients want to deregister a company and often consult how to do it, we would like to share more information with you for tax treatment with ATO in this article. The article is based on ATO’s guidance of deregistering a company.
Overview of deregistration
A company may be deregistered either:
• voluntarily, for example, after it is closed down
• by the Australian Securities & Investments Commission (ASIC), for example, for outstanding annual review fees
• by court order, for example, following amalgamation or as a result of winding-up.
Once a company is deregistered it ceases to exist as a legal entity and can no longer do anything in its own right.
Note: To prevent administrative deregistration of your company by ASIC, keep your contact details and obligations up to date with ASIC. It is better to authorize ASIC agent to manage your company compliance issues to avoid any late payment for the renew fee and other issues.
Claire Chang