You can deregister a company in Australia by applying through ASIC to have it permanently removed from the official companies register. However, the steps involved in this process are confusing for many directors.
That’s exactly why https://abmag.com.au put this guide together. Read on further to find out:
- What does dissolution actually mean for your venture
- How to voluntarily deregister step by step
- What to do with tax registrations and company assets
- What happens after your firm officially exits
Let’s get started.
What Does It Mean to Deregister a Company in Australia?
When the Australian Securities and Investments Commission (ASIC) removes your company from the register, it loses its legal identity.
This means the business can no longer trade, hold assets, or take on debt (not the same as simply shutting up shop). Its registered status is gone, along with all rights and obligations.
Many directors assume that the closure of a firm is just another word for liquidation (spoiler: it isn’t!). In reality, liquidation involves a creditor or a court settling outstanding debts before closure.
By contrast, company deregistration is simpler. It’s designed for Australian companies that have already stopped trading and have no remaining matters to resolve.
For example, a small Brisbane consultancy that settled all accounts and applied to ASIC ceased to exist once approved. From that point, the firm has no legal authority to operate or conduct business.
Voluntary Deregistration: Can You Close Your Company Without the Stress?
You can, as long as your company has stopped trading, holds no assets, and has no noticeable debts when you apply. However, voluntary exit isn’t that easy. ASIC has specific legal requirements your business must satisfy to consider your application.
The following two things determine whether you can voluntarily deregister:
Meeting Your Legal Obligations Ahead of Application
Voluntary deregistration is only available to solvent companies that have genuinely ceased trading. The firm must have no serious liabilities owed to any creditor or third party at the time of dissolution. Plus, all members must formally agree to close the business, as required by ASIC.
From what we’ve seen, directors who sort their duties early avoid most delays. In practice, the company owner carries full personal responsibility for confirming they’ve met every legal obligation. If any debts remain, the venture is not eligible for formal exit.
How to Voluntarily Deregister with the Australian Securities and Investments Commission
To voluntarily deregister, complete ASIC Form 6010 and submit it through the online portal. The current application fee is $52 via ASIC online.
After submission, ASIC publishes a notice in the Government Gazette. From that due date, creditors and shareholders have two months to raise objections.
If no one raises objections, the authority removes the company from the register and finalises any fees or penalties. Once the company settles any outstanding fees or penalties, it can leave the register with all obligations resolved.
The Step-by-Step Company Deregistration Process
Many business owners don’t realise how many steps sit between deciding to close and actually deregistering the company. And honestly, most directors we’ve spoken to wish someone was there to provide them with a clear checklist from day one. So here it is.
You must go through these four steps to complete the firm’s formal exit procedure:
- Confirm Eligibility First: If outstanding liabilities or legal proceedings are still active, your company cannot be approved. Officeholders are personally responsible for completing this assessment prior to taking any further action.
- Cancel Registrations and Settle Fees: Directors must cancel all business licences, Australian Business Number (ABN), and tax registrations from the ATO as part of the process. As any unpaid annual review fee or outstanding charges will attract penalties, pay everything by the due date.
- Lodge Form 6010 with ASIC: Completing this online form is easy. Submit it through ASIC’s portal, pay the application fee, and wait for the gazette notice confirming the next stage of the procedure.
- Wait for Final Confirmation: We’ve already mentioned that two months after the gazette notice, the authority reviews any objections from creditors or other parties. With no claims received, they formally deregister the business and close its operations permanently.
Frankly, getting this process right the first time saves you from unnecessary delays. If anything seems unclear, you can consult an accountant familiar with regulatory requirements to ensure the lodgement is completed correctly.
Suggestion: Before you plan to close your company, confirm your business meets every ASIC eligibility requirement. A sole trader converting structures or a director wrapping up years of operations faces the same rules either way.
Tax Registrations and Loose Ends: What Most Business Owners Miss
Sorting your tax registrations early saves you from ongoing compliance headaches long after your firm is closed. With that in mind, your tax obligations with the Australian Taxation Office (ATO) deserve just as much attention as the ASIC process.
During the submission of your application, you need to pay attention to two areas in particular:
Sorting Your Tax Registrations Before the Company Is Deregistered
The deregistration of a company does not automatically cancel its tax duties. Directors must handle these separately with the ATO.
In practice, the ATO rarely lets outstanding lodgements slide, even for a closing business. For this reason, we recommend terminating your ABN through the Australian Business Register as part of the application process. This procedure includes
- Paying any unpaid Business Activity Statement (BAS)
- Income tax returns
- Other legal obligations tied to the firm
Additionally, if your business holds an Australian financial services licence, notify the relevant party to cancel it in line with the deregistration date. Skipping this step leaves an active licence for a venture that no longer exists, which can create compliance issues with ASIC down the track.
Quick Tip: Consult an accountant to get solid advice on sequencing these steps correctly to avoid penalties payable down the track.
What Happens to a Deregistered Company’s Assets?
A lot of directors don’t think about their company’s assets until it’s too late (yes, even that unused domain name counts). So anything the business still holds transfers to the Crown automatically.
That means shareholders and members must arrange the distribution or sale of property before submitting the application. This includes bank accounts, intellectual property, and any holdings involving third parties.
After Your Australian Company Is Deregistered, What’s Next?
After deregistration, you should focus immediately on record-keeping, notifying relevant parties, and understanding when reinstatement is possible. Many former directors fail to complete this step, which can lead to complications later.
Here’s a quick breakdown of what to expect after your firm is removed from the register:
| What to Address | Details |
| Company Records | Keep all records for five years after deregistration |
| Creditor Notifications | Send a formal letter or notice to every creditor and supplier |
| Outstanding Invoices | Chase any unpaid invoices or money owed before closing accounts |
| Reinstatement Rules | ASIC or a court can reinstate a deregistered company |
| Annual Review Fee | Confirm no outstanding fees remain payable after removal |
None of these steps is complicated to follow, but skipping even one can create headaches later. A clean exit requires completing each of these points properly prior to moving on to the next stage.
Ready to Deregister Your Company? Here’s Your Next Move
Closing a business isn’t always easy. But once you know the right steps, the process becomes easier to understand. Noticeably, voluntary dissolution gives directors a simple path out, as long as the eligibility boxes are ticked first.
Before you deregister your company, sort your tax obligations, assets, and creditor notifications. An accountant familiar with ASIC requirements can save you time and help you avoid unnecessary fees.
When you’re ready to deregister a company and need reliable guidance along the way, visit Australian Business Magazine. We cover Australian business topics to help you make confident decisions at every step.