Visit our dedicated small business restructuring site for small business owners facing financial distress.
ASIC provides guidance on closing a small business, covering deregistration for companies and trusts, including both voluntary and ASIC-initiated options. Requirements for closure include consensus among members, asset valuation below $1,000, no outstanding liabilities, and no ongoing legal action. Directors are reminded of their legal duties to act in the company's best interests, and the serious consequences of failing to do so. Other options include a members' voluntary winding up for solvent companies and external administration for insolvent ones.
If your business is insolvent, it's important to consult a liquidator or lawyer before proceeding, as the risks of civil penalties or criminal charges without professional guidance can be significant. Contact us if you need immediate assistance, or watch ASIC's video on how to close down a company in Australia. You can also read more about cancelling a business on the ASIC website.
Further Reading
Title | Short Summary |
|---|---|
Small Business Debt Helpline | A guiding service offering free financial counselling for small businesses in hardship, helping navigate debt and cash flow troubles. |
NSW Small Business Commission Mediation Service | Mediation services for small businesses in financial strain due to disputes, especially within the building and construction industry. |
Is Your Business Experiencing Financial Difficulty? - AFSA | AFSA's guide for small businesses facing financial difficulties, offering direction for debt management and legal responsibilities. |
