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Closing a Small Business

Closing a Small Business

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How to Close Your Small Business

One may eventually choose to put a permanent end to a business. Usually, a business name is operative so long as no steps have been taken to cancel such name. The closure of a company mainly would generally depend on the structure of the business.

Sole Proprietorship

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One person owns this form of business. The closure of this kind of business is not difficult. The business may end with the death of the proprietor or through a case of bankruptcy. In the event of a closure, the sole trader shoulders the loss alone.

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Partnership

A partnership involves two to twenty persons and may not be quickly dissolved. However, it only requires the termination of the relationship between partners. A partnership may become closed through an agreement among partners or a court order or circumstances affecting one or more partners. Also, it automatically terminates when the contract entered into expires.

Limited Liability Company

ASIC still recognises companies that have closed because the ACN assigned cannot be cancelled. However, a company may officially be blacklisted on the register through deregistration. Deregistration involves a process of relieving a company of their obligations to ASIC. The body cannot deregister if the company owes or is declared insolvent. Also, the company must fulfil some requirements lay down by the Australian Taxation Office. After the deregistration, the company's status becomes deregistered although it may later be reinstated through an application to ASIC or the court.

Joint Venture

The process is similar to that of partnership. It is mainly based on the agreement of the joint owners. Also, the company may be dissolved upon the expiration of their contract.

How to Cancel ABN and ACN

If you are cancelling your application for any reason such as the closure of business or change, you must fulfil all obligations towards the government. You can only cancel or make changes through myGovID already linked to your ABN. As opposed to ABN, it is impossible to cancel your ACN application when you either want to change your business or close it down. Unless you have taken reasonable steps to deregister your business name or company, all obligations to ASIC or other bodies must fulfil dutifully. Delay in this process leads to time and money wastage.

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How to Cancel A Business Name?

First, you must be beware of scammers who impersonate ASIC to deceive you into making invalid payments for renewal. You may cancel your business name through the ASIC website. However, you must have linked your BVN to any ASIC connect account. Also, the address to be given must your current address to receive cancellation notices.

To cancel your business name, kindly

  • Visit the ASIC website.
  • Click on the ASIC Connect tab and log in.
  • Select Lodgements and Notifications
  • Select the business name you are cancelling
  • Select Cancel/Transfer business name

It officially marks the beginning of your application.

  • Select "I would like to cancel the business name" and proceed with the Next tab.
  • Review your application
  • You are under a duty to input the correct information.
  • Agree to the declarations
  • Kindly read through the declaration and agree to them before submission.
  • Confirm submission.
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