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 |
|---|---|
SBR eBook for Small Business Owners | A plain-English introduction to Small Business Restructuring for business owners: what the process involves, who may be eligible, and how it differs from other options. |
SBR eBook for Accountants | A step-by-step guide to Small Business Restructuring for accountants and advisers: how the process works, who may be eligible, and how to support clients in distress. |
Insolvency Fact-checker | An interactive tool to help directors and small business owners gauge whether a company may be insolvent and consider early next steps. A starting point, not a substitute for advice. |
