Steps to Close Your Business

If your business is no longer profitable and is unlikely to become profitable in the future, you may consider closing the business.

  • Review your position

Before closing, review your financial position and consider speaking with your accountant or business adviser.

  • Finalise employees

Pay all outstanding wages, leave entitlements, superannuation and other employee obligations.

  • Notify customers and suppliers

Advise customers, suppliers, banks and other relevant parties that the business is closing.

  • Deal with debts and contracts

Pay or make arrangements for outstanding debts and review any leases, loans, guarantees and customer contracts.

  • Finalise tax and government obligations

Complete outstanding BAS, tax returns, PAYG and other ATO obligations. Cancel registrations such as the ABN, GST and PAYG when appropriate.

  • Close the business

Cancel the business name or deregister the company with ASIC, cancel unnecessary licences and insurance, and close business bank accounts once all transactions are completed.

  • Keep your records

Business, financial, tax and employee records must be kept for the required period after the business closes.

The ATO also provides a record keeping evaluation tool for you to assess your business’ record keeping and information management.

https://www.ato.gov.au/calculators-and-tools/businesses-record-keeping-evaluation

Important: If the business cannot pay its debts as they fall due, seek professional insolvency advice before taking steps to close or deregister the company.

 

Author

May Aung