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 |
|---|---|
Beyond Blue - New Access for Small Business Owners | Tailored mental health coaching for small business owners, with free, confidential sessions designed to manage stress through Cognitive Behavioural Therapy. |
ASIC Closing A Small Business | Guidance for winding up companies and trusts, covering voluntary and ASIC-initiated deregistration, plus when to seek professional advice if your business is insolvent. |
ACCC's Debt Collection Guideline for Collectors & Creditors | This joint ACCC and ASIC guideline sets out how consumer protection laws apply to debt collection in Australia. It covers enforcement responsibilities, key definitions, and the rights and obligations of both collectors and creditors. A practical reference for anyone involved in managing or recovering debts. |
